On Wednesday crypto market was relatively quick as compared to the past several weeks following the FTX saga. Market sentiment was very much on the rise.
In the most recent episodes of crypto market trends, Bitcoin the world’s biggest and most expensive cryptocurrency has seen its biggest price increase since the 10th of November. Ethereum has also experienced a speedy boost in its price.
On Wednesday Bitcoin price exceeded the $17000 mark as the US consumer report gained the interest of investors. This has been the first time since July, that the crypto market is able to grab consumer interest.
Ethereum touched its highest mark of November as it moved closer to the $13,000 mark. Ethereum gained over 4.5% in a single day.
Bitcoin Price Analysis
Just a day before today, market experts predicted that Bitcoin will be surrounded by a bearish trend for the coming weeks and it can fall below $10,000.
But on Wednesday, market indicators completely changed. On Wednesday morning the U.S. authorities published consumer reports showing strong consumer trust.
This strong consumer confidence trend has overthrown the bearish trend in the market. As a result, Bitcoin’s price increased by $1000 in just 24 hours.
After two weeks of continuous struggle, Bitcoin finally reached the $17000 mark. If the bullish trend continued for a couple of weeks, the market will once more see a dramatic rise in Bitcoin’s price.
This gain on Wednesday is a good outcome for all those investors who have Bitcoin in reserve. Bitcoin before the demise of FTX was being traded at $21000. Today’s rise is an indication that Bitcoin is on its way to recovery.
Moreover, crypto analysts also said that a closer look at the data points out the stable outlook of Bitcoin price for a longer run of time.
MacroMicro, a digital firm that analyzes investors’ sentiments said that investors are optimistic about the fact that Feds will protect the industry against interest price hikes in the upcoming months.
This move will help the market to regain stability. Moreover, if this happens cryptocurrency markets will see a stream of investments, which are currently being held back by investors.
This stream of investment will provide the crypto exchanges and crypto lenders with the much-needed funds in order to stay sustainable.
Ray Salmond, Cointelegraph’s Head of Markets said that despite the fact that Bitcoin is showing a bullish trend in the short-run of time, any further news about increased interest rates by the feds can be daunting for cryptocurrency.
He also added that interest rate hikes, high inflation, and volatility in the market along with the FTX collapse can still change the entire market’s bullish sentiment and can further send the Bitcoin prices down.
Ethereum Price Analysis
Following the Bitcoin price hike, Ethereum ETH also moved upward on Wednesday touching a new height after two weeks.
ETH/USD nearly crossed the $13000 mark, this is the higher Ethereum has gone since Nov 15th. An overall market sentiment shows that the current crypto market trend seems stuck between bearish and bullish trends amid the fall of FTX.
Despite all the bad news and outcomes in November, the end of November 2022 has been a big positive for the investors who were eagerly waiting for bearish trends to perish.
Investors now believe that given the current stability Bitcoin (BTC) and Ethereum (ETHC) can be traded above $17,000 and $13,000 in December.
It is important to mention that despite the fact that the Feds have predicted high inflation in the coming weeks, the U.S. consumer’s trust in the current economic dynamics has given the market much-needed stability.
But how durable this stability is will be decided in the coming few weeks. This is the time for investors to watch the market closely and wait a bit longer in order to earn sustained profits.