Bitcoin has been slowly declining and is trading around $ 44,000 on the penultimate day of the week. Technical analysis showed us that the inability of the first cryptocurrency to safely exceed $ 48,000 would result in a correction. However, the correction remains moderate at this stage.
Apparently, large institutional investors are focusing on the traditional market. The publication of the FOMC minutes triggered a liquidation of risky assets, but so far it has only marginally affected the crypto market. The S&P 500 benchmark stock index is declining, which could be followed by the crypto market.
Bitcoin trading volumes remain depressed, suggesting that a wait-and-see attitude is maintained. In theory, the current uncertainty of digital assets and low trading volumes are a great opportunity for a small market to benefit very quickly from increased market volatility.
Bitcoin is the undisputed leader in the crypto market at the current stage, but there is the opinion that it can grant its role to Ethereum. Nigel Green, CEO of deVere Group, believes the price of ETH could surpass BTC in a few years.
Already many cryptocurrency exchanges claim that Ethereum is ahead of Bitcoin in terms of trading volumes. In fact, the project prides itself on keeping its promises, and while deadlines are regularly postponed, this is perceived positively in the community, pointing to a desire to minimize mistakes. Ethereum has more real-world potential and is also the basis for a large number of projects, including DeFi and Stablecoin.
The Dogecoin Foundation, whose leadership includes Vitaly Buterin and Neuralink CEO Jared Birchall (= Elon Musk), can be an interesting news factor. Apparently, after “probing” the prospects of the price dynamics of this cryptocurrency joke, it was decided to continue the development.
As always, it is a combination of factors that attracted famous names to the project and now the demand for the currency can reach a whole new level. It is very likely that the slogan “DOGE = $ 1” will become a reality.
The end of the summer calm could intensify the fluctuations of the cryptography market. As borders begin to open up and as a relatively successful vaccination campaign is underway, many investors have gone on holiday. By its appearance, its return will be noticed immediately by the increase of the volumes of negotiation. It is likely that, as big capital returns to work, we can have a warm autumn and an equally hot winter.
He FxPro Team of analysts
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