When will the price of Bitcoin, Ethereum, XRP, Solana and Avalanche go back up?

With the recent correction in the cryptocurrency market causing Bitcoin, Ethereum, XRP, Solana, Avalanche and most major crypto assets to plummet, many traders are wondering when the price of cryptocurrencies will recover? Although it’s still too early to tell, let’s take a closer look at the current market situation and potential short-term results.

What is causing this week’s market correction?

As we mentioned in our cryptocurrency market analysis article yesterday, the main reason for the recent market slump is due to the Fed raising interest rates.

An increase in interest rates means that it is more attractive to save money, which causes a downward correction in the stock market. Yesterday was the worst day of the year for the stock market as investors pulled shares in response to rising interest rates.

While usually cryptocurrency markets exhibit an inverse relationship with stock markets, recently bitcoin has followed stock trends, rising and falling with the stock market.

Since most other cryptocurrencies like Ethereum, XRP, Avalanche, and Solana follow the price movements of Bitcoin, this caused a chain reaction that eventually caused the crypto market to plummet. currencies over $100 billion, with the global cryptocurrency market capitalization growing from $1.7 trillion to $1.6 trillion in 24 hours.

Since yesterday’s panic selling, things still look bearish, but the significant selling has ceased, giving the market a chance to find new support.

Will we soon see a rebound?

May is usually a great month for bitcoin and cryptocurrencies in general, where markets show bullish momentum most years. However, analysts say this year will be different due to rising inflation and the state of current affairs around the world.

Many fear an upcoming recession, which could lead to even more bearish momentum for the stock market and cryptocurrencies. However, we have some good news regarding the job market in America.

According to the Bureau of Labor Statistics, employers added more than 428,000 jobs in April, and the unemployment rate remained relatively unchanged at 3.6%. This means that an upcoming recession could be slowed down or even not happen at all.

The best thing that can happen to bitcoin and other cryptocurrencies is to decouple from the stock market and return to its inverse relationship with traditional markets. After all, if traders fear inflation, bitcoin is inherently immune to it due to the fixed supply of 21 million tokens. Once the price of bitcoin begins to recover, most other major altcoins like Ethereum, XRP, Avalanche, and Solana will follow, often seeing even greater price growth.

However, what is holding many users back is the volatility of bitcoin and the general uncertainty surrounding the crypto markets. The good news is that bitcoin continues to attract mainstream attention.

It is still too early to tell if a rebound is on the horizon. However, one thing is clear, this weekend will be critical for bitcoin and other cryptocurrencies. If bitcoin price can hold above the $30,000 level, there is a good chance that crypto markets will see a rebound in the coming weeks. However, if bitcoin price breaks below the $30,000 support level, the short-term outlook could be bleak.

For long-term investors, now is a great opportunity to pick up some undervalued and undervalued cryptocurrencies if you’re brave enough to buy the bottom. The long-term outlook for bitcoin and cryptocurrencies remains bullish regardless of short-term market conditions.

Pin up Hide the table of contents

Leave a Comment