Bitcoin price below 50,000 dollars – investors are cashing in for now
The Bitcoin course, the largest and best-known cryptocurrency at the same time, is quoted in the middle of the week and thus one day before the major central bank event in the Rocky Mountains (Jackson Hole, Wyoming) below the psychological level of $ 50,000 per unit. The key currency has lost around 3.60 percent per day. Second and third tier currencies also suffer against this backdrop. The Ethereum course lost around five percent to $ 3,172.
In addition to profit-taking, investors in the cryptocurrency markets could now increasingly look forward to signals regarding future monetary policy. Meanwhile, Bitcoin whales have noticeably ventured into the digital equipment market.
The central bank event in Jackson Hole could have an impact on Bitcoin and Co.
Crypto investors continued to cash in on Wednesday for the time being after the Bitcoin price hit the psychological mark of $ 50,000 for the first time since mid-May on Monday. Technical sales could also play a role, and a short break from the recent rally should not detract from it. Investors who recently lingered behind the sidelines may see the correction as an opportunity to re-enter the market.
The discussions about a more restrictive US monetary policy could also slow down the courses around Bitcoin, Ether and Co. A hawkish stance on the part of the central bankers should not least strengthen the US dollar, which could be at the expense of crypto rates. In times of the pandemic, cryptocurrencies were also repeatedly viewed as a supposed hedge and diversification instrument to counter value risks. Last but not least, a turnaround in interest rates in the USA is likely to slow the pace of rising inflation.
On Friday afternoon, investors expect signals from Fed Chairman Jerome Powell on monetary policy.
Do you already know the top 10 cryptocurrencies to trade in 2021?
Bitcoin whales are increasingly buying again
As data from Chainanalysis shows, so-called Bitcoin whales or major investors acquired almost 10 billion US dollars between the end of June and August 22nd. As a rule, said buyer groups are also considered long-term investors who actually hold an average of at least 75 percent of the bitcoins acquired.
Bitcoin and Ethereum course: it could go on like this
Investors are looking forward to the central bankers’ meeting in Jackson Hole with excitement. Should Jerome Powell announce a turnaround in interest rates, this should not be at the expense of investors’ price fantasies. Overall, however, the mixed situation on the markets remains to be assessed positively. With the latest announcements of the payment service PayPal and the US trading platform Coinbase, grist continues to flow on investors’ mills. So-called Bitcoin whales could also make more commitments in the event of rising prices.
I think it will soon be possible to regain the $ 50,000 mark again. In my opinion, there is still a setback potential up to around $ 46,700. Equalizing the $ 52,000 mark remains essential to trigger a rally to $ 60,000.
The Ethereum course (ETH), on the other hand, could drop to $ 3,000. Here, too, the conquest of the technical resistance mark on the upper side in the amount of 3,500 remains indispensable in order to create new upward advances.
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