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HomeNewsEthereum price close to $ 3,500 - Bitcoin and Solana in demand

Ethereum price close to $ 3,500 – Bitcoin and Solana in demand

Bitcoin, Ether and Co on the rise – BTC over 200-day line

The most important cryptocurrencies in terms of market size, Bitcoin and Ether, present themselves with positive quotations in the middle of the week. Bitcoin, the largest and best-known digital currency, is trading above the $ 47,000 mark and thus above the 200-day average. Ether can also pick up again in the slipstream of the Bitcoin recovery and is about three percent more expensive to over $ 3,400 per unit. The Solana token can reduce its losses, but remains ailing overall.

US inflation data is pulling investors out of their reserves

Decreasing inflation in the US has encouraged investors to re-enter the cryptocurrency market. With the latest inflation developments in the US, the signs are still good that the existing ultra-loose monetary policy could continue. Consumer prices fell by 5.3 percent in August. In the previous month, the inflation rate was still at 5.4 hundredths. Investors hope that the high level of inflation has thus been overcome. On the other hand, in a week at the US Federal Reserve meeting, the US Fed might think less of calling for so-called tapering, or the melting of monthly bond purchases amounting to 120 billion dollars. This should weaken the US dollar and make investment alternatives such as cryptocurrencies more interesting.

The central bank policy remains one of the decisive motivations for investors to get into Bitcoin and Co. Since the outbreak of the pandemic in the western world, cryptocurrencies have been seen as a supposed hedge and diversification instrument.

Do you already know the top 10 cryptocurrencies to trade in 2021?

Solana can recover after technical difficulties

After the failure of the Solana blockchain network, the signs point to recovery on Wednesday. Starting from the all-time high of around $ 215, the currency has lost more than 33 percent of its value in the past few days. The drop in prices is due to the failure of the Solana network. Last but not least, profit-taking is likely to have accelerated the price slide.

It is now important that the network runs smoothly again and that investors’ trust in the project is restored.

Ethereum, Bitcoin and Co: It could go on like this

Overall, the signs on the cryptocurrency market are positive again. Conquering the 200-day average for Bitcoin has made the stock market lights jump back to green, at least from a technical perspective. This is particularly important for long-term investors. Overall, a sustainable mastery of the $ 48,000 mark remains elementary in order to be able to make up for the recent price losses. A week after the introduction of the BTC in El Salvador, the willingness to take risks still remains somewhat reduced.

Ethereum investors also remain dependent on the Bitcoin price trend. Only in the event of an equalization of the $ 3,500 mark is the way cleared to $ 4,000.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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