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One way or another, but the entire cryptocurrency market is still synchronously repeating the BTC patterns. The rate of change in the price of each coin can differ quite significantly, but the general trend is more than obvious. Interest in cryptocurrencies is growing, but for most users they are not entirely clear. The synchronous volatility of the cryptocurrency market is likely to begin to fade after cryptography is integrated into the real economy and digital money is distributed among industries.
The current fall of the cryptocurrency market is provoked by several factors. Not the last role in it is played by the extremely difficult military-political situation and a series of crises associated with it. In such difficult historical periods, investors traditionally get rid of high-risk assets. Mass selling on the back of price correction and panic on cryptocurrency exchanges exacerbated the further fall.
Bitcoin vs Ethereum
At first glance, the two largest cryptocurrencies are very similar. However, this is not the case. Bitcoin was created as an alternative to traditional centralized finance. However, now the first successful cryptocurrency is not functioning as it was intended. It is considered not so much as a means of payment, but as a tool for speculation and investment.
Ethereum has opened a new page in the history of blockchain technology. This is not only a coin, but also a platform designed to automate business processes and any contractual relationship. Thus began the era of smart contracts and decentralized applications.
Both coins are based on the blockchain and so far use the Proof of Work consensus algorithm. PoW platforms have low performance, often experience congestion, and transaction fees become too high. In addition, this algorithm is very energy intensive, which causes concern among environmentalists.
Ethereum is currently in the midst of the biggest upgrade in blockchain history. The platform is moving to a more energy efficient and faster Proof of Stake algorithm. Thus, developers seek to eliminate the main problems of the blockchain and, as a result, reduce the cost of transactions. The successful or unsuccessful completion of the Merge is one of the most powerful factors influencing the price of a coin in the foreseeable future.
Factors affecting the price of cryptocurrencies
The cryptocurrency exchange rate is very sensitive to a number of factors. Some of them similarly affect almost all markets, while others are quite specific. Political and macroeconomic processes objectively affect absolutely all spheres of human activity. Among the specific factors worth mentioning:
- Introduction of new technologies;
- Speculation;
- Network security issues;
- Mass media.
Bitcoin Price Prediction
The protracted fall of BTC and the cryptocurrency market gives grounds for rather pessimistic forecasts, up to the expectation of its complete collapse. At the time of writing, Bitcoin is trading in a tight range around $20,000 per coin. Many investors believe that in the near future, the cryptocurrency may test another local minimum at a level close to $10,000.
Analysts from leading agencies are more optimistic. Fundamentally, cryptocurrencies are growing and it is quite possible that the market will begin to recover as early as the second half of 2022.
The closest and quite achievable all-time high, calculated using AI, is slightly above 91,000 per coin.
Ethereum Price Prediction
Ethereum holds the second line of the cryptocurrency rating by capitalization. At the time of writing, the coin is trading slightly above $1,200.
Analysts do not rule out a further fall in the price of Ethereum in the coming months. The situation may change with the onset of 2023. According to preliminary estimates, Ethereum will recover in price and may exceed $4,300 by the end of the year.
In 2024-25, the rate will continue to grow until the renewal of the historical maximum. However, price trends and dynamics largely depend on the successful implementation of ongoing blockchain updates.
Which is better Bitcoin or Ethereum
Savvy investors don’t pit the two biggest coins against each other. They invest in both, especially since you can convert BTC to ETH at any time if necessary.
Both coins can bring great profits in the long run. However, all cryptocurrencies remain in the group of high-risk assets. If you are just starting your acquaintance with digital assets, remember that investing in crypto does not mean instant enrichment. Be prepared for potential losses on your investment and don’t risk more than you can lose.
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