After many cryptocurrencies lost up to 20 percent, prices have recovered slightly. But on Wednesday there is an appointment that could affect Bitcoin and Co. again.
Montreal. Even if investors in the crypto market are used to a high degree of volatility, the price slide last weekend is likely to have surprised many of them. In the night from Friday to Saturday, important cryptocurrencies such as Bitcoin or Ether lost up to 20 percent in the meantime. Investors also suffered heavy losses in the case of second and third-tier digital currencies.
The situation has eased slightly again. Bitcoin was quoted again at over $ 48,500 on Monday afternoon, around $ 6,000 above the weekend low of $ 42,874 that the Coinmarketcap platform made on Saturday. The Ethereum rate also rose again to over $ 4,000, after the weekend low of $ 3,525 on Saturday.
However, experts do not yet see any reason for lasting relief. The fact that the course can drop 20 percent in the event of great uncertainty may well be repeated in the future. “
“The shock remains – and rightly so”
Simon Peters, Senior Account Manager at the trading platform eToro, also points out that there has been a lot of speculation among experts about the reasons for the crash. As additional possible causes, he mentions, on the one hand, heavily leveraged positions and, on the other hand, the fact that many investors are said to have moved crypto assets from their wallets, i.e. virtual crypto purses, to crypto exchanges at the same time.
Cryptocurrencies are experiencing heavy losses: Bitcoin below $ 50,000
According to market analyst Timo Emden, many investors are likely to be unsettled for the time being in view of this mixed situation: “Investors are still feeling the shock from the weekend.” And rightly so, he believes: “The risks have not yet disappeared: Omikron is not out of the world, the Chinese real estate company Evergrande worries many people, and there is also the fear of a turnaround in interest rates. “
Another concern: On Wednesday, top managers from eight large crypto companies testify before a committee of the US House of Representatives, Emden explains. It should be about a possible tightening of the regulation, which, according to Emden, could potentially influence the courses.
He, therefore, sees downside potential for this week as well. If the going gets tough, the price could drop to the € 40,000 mark. “Investors should say goodbye to the thought of a year-end rally.”
