Despite the new information that is pushing up the price of Bitcoin and Ethereum rapidly, many experts believe that investors need to be really careful with their buying decisions.
The cryptocurrency market has surged since the US Federal Reserve (FED) announced a 0.75% interest rate hike and the country’s Office of Economic Analysis released GDP data down 0.9%. in Q2/2022.
Immediately after the above news was published, on July 27, Bitcoin (BTC) price increased by more than 10%, setting a local top at $23,480. Many other cryptocurrencies also rallied, with Ethereum (ETH), Polkadot (DOT) and Polygon (MATIC) all posting double-digit gains.
The same thing happened throughout the day of July 28. Following the rally on the 27th, the Bitcoin price has once again surpassed the $24,000 mark, up 4%. According to VietNamNet’s observations, as of the early morning hours of July 29, the Bitcoin price was being recorded at around $24,000.
About a week ago, the Bitcoin price rebounded to the $24,000 mark. However, that price could not hold for long and fell back to $21,000 soon after. If Bitcoin price closes the day above $23,900, it will be a sign of a new bull run in the short term.
Besides Bitcoin, another cryptocurrency, Ethereum, is showing strong growth. In just the past 48 hours, Ethereum price increased from $1,420 to $1,755, about 41 million. On July 28 alone, Ethereum increased by 6% from the previous day’s price.
The reason why Bitcoin increased in price despite the negative news is due to the unusual psychology of investors.
According to Quantum Economics founder and CEO Mati Greenspan, investors seem to be imagining scenarios that are even worse than a 0.75% Fed rate hike and a decline. 0.9% of US GDP. Therefore, after the announcement of the above two information, the market’s reaction became positive because the worries of investors did not come true.
Previously, the Fed’s efforts to curb inflation by raising interest rates were often accompanied by a retracement of investment activity in the stock and cryptocurrency markets.
Particularly in the case of Ethereum, information from the development team about the final rehearsals before the launch of Ethereum 2.0 version has created positive waves. This pushed the Ethereum price up by 50% in just 2 weeks, along with the growth of cryptocurrencies in the Ethereum ecosystem.
It is a fact that despite the increasing price of Bitcoin and other cryptocurrencies, many famous investors still view the market in a rather negative light.
According to analyst Pav Hundal at Australian exchange Swyftx, the market’s strong reaction to this Fed rate hike was a surprise move for him, while the overall economic landscape remained quite bleak.
Agreeing with this statement, famous trader – il Capo Of Crypto predicted, Bitcoin price will fluctuate mainly in the range from 19,000 USD – 23,000 USD. He believes that the cryptocurrency market is still in a downtrend, showing no signs of accumulation and even going to lower lows in the future. Therefore, this trader advises investors to consider carefully if they plan to buy Bitcoin at the present time.