After the various convulsions that the crypto market has gone through, there are many factors that they evaluate to be able to determine for sure what has driven the market and if it represents a real change in terms of the trend of Bitcoin and other cryptocurrencies.. You can check platforms like BitIndex for a smoother trading experience with the best trading techniques.
The aspect that is related to the digital financial market and that caused a terrible effect on the evolution of the same was the collapse of the cryptographic project known as Terra.
The feelings generated by the market are diverse and that is where the greatest fears or expectations of investors take refuge., in this delicate panorama they usually remain attentive to any change.
The surprising thing is that expectations regarding the financial markets are beginning to generate greater confidence and tranquility in the various users., which has undoubtedly contributed to the slight rise in cryptocurrencies.
Many people tend to infer that the changes in the displacement of the curve of Bitcoin and other cryptocurrencies refers precisely to Ethereum launching a new phase to the market that will allow it to make it much safer., easy and reliable crypto investment process, this merger is known as "The Merge".
The crypto boost is given by Ethereum
Although the value of Bitcoin seems to have stabilized by staying on the margin of the 24.000 it could be considered that this is perhaps the floor that investors were waiting for so much to be able to consider again the entrances to the crypto market.
There are many considerations because the overall economic outlook seems to be in a calm where it has not yet been definitively established what could happen., but many usually consider that this impulse was after the announcement of the tests of the merger that Ethereum launched.
Possibly Ethereum has remained in a constant increase despite the downward trend that has developed during the months that go from 2022, one of the most outstanding calculations was the one that showed that Ethereum has managed to increase its value by almost 100%, growing compared to Bitcoin.
The reality is that the expectation that exists about the changes that will be generated in the Ethereum network is very high, so this could be contributing to the price increase and of course in the positioning of the same at the level of market capitalization.
We are facing a change of scenario that could drive an upward trend, but, cryptocurrency trading levels are significantly affected, for the drastic measures that have been taken at the level of the economy of powers such as the United States and Spain.
An announced end that was not fulfilled
The collapse caused by Terra left more than one investor with a negative attitude towards digital currencies, which together with the fall of the crypto market complicated the possibilities of obtaining returns due to the fact that the volume of cryptocurrency purchase transactions are discouraged.
Forecasts regarding the valuation of cryptocurrencies have been very varied, where the followers of digital currencies assume that we are in a stage of recovery and that the value of Bitcoin could reach 100,000 dollars, on the other hand there were many who announced the end of the crypto ecosystem.
Extremes are never good at all, that is why in the case of financial markets a neutral position must be sought, where it is the equilibrium that determines the displacement of the supply and demand curve to determine a coherent price that agrees with the global economic landscape.
Bitcoin and Ethereum are increasing in value progressively, this as a consequence of the crypto winter that could have come to an end, to be able to create a more natural and reliable scenario where short- and long-term investors can allocate their capital to recover what was lost in the first half of the year.
Increases in the price of Bitcoin vary could be oscillating between the 10 and the 20% till the date, generating in turn a rebound in the price of the rest of the cryptocurrencies since the market bases most of its fluctuations based on Bitcoin.
This increase not only in Bitcoin but also in Ethereum could give a sense of tranquility not only to users but also to exchanges that have found themselves between a rock and a hard place to survive the voracious market that envelops cryptocurrencies..
Conclution
The temporary recovery that the digital financial market has had could be linked to several factors among which the Fed's decision to increase rates in a smaller proportion than expected and also that new proposals are approaching in the crypto environment.
The interesting thing about all this is that the position of investors is now much more analytical and cautious., which could incur much more effective investments.
