The cryptocurrency market is up to ups and downs. While the price of Bitcoin crosses a turbulence phase and appears in the red, the Ether finally goes up the slope and approaches its absolute record.
There is movement on the cryptocurrency market. After having chained the records, and passed the threshold of $ 124,000 in August, the Bitcoin course crosses a small phase of decline. The dean of the cryptos has ironed under $ 115,000, leaving a larger downside to investors.
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Why is Bitcoin in red?
To explain King Bitcoin’s soft stroke, we will point the finger unfavorable macroeconomic conditions to assets considered to be risky. The market fears the next speech by Jerome Powell, boss of the American federal reserve, about interest rates.
Contrary to what was expected, the central bank should not revise interest rates in September. This type of decision punctuates all markets and enormously influences the decisions of investors. In this case, current economic conditions push investors to turn away from risky assets. This is why the index funds devoted to Bitcoin recorded a capital outlet. In addition, the last Bitcoin record prompted certain holders to take advantage, triggering massive liquidations that pulled the course.
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The great return of Ether
In parallel, The course of Ether operates a long -standing return in force. While Bitcoin broke several records since last year, the second crypto on the market has remained in the shadows. The currency course has long stagnated below the levels recorded during the last Haussier market. Unlike Bitcoin, Ether has not yet recorded again absolute record. The crypto record still dates back to 2021. Four years ago, the motto had reached $ 4,878.
Since the start of the year, the crypto has nevertheless recorded an increase of 30 % of its value. Carried by the course of Bitcoin, it recently stabilized above the $ 4,000, revealing the prospect of a new record.
The rise in the Ether course is largely based on The success of the Exchange Traded Fund (ETF) based on crypto. These index funds were acclaimed by institutional investors, with $ 27.74 billion in net assets under management. More than 5 % of ethers are immobilized in index funds. In this context, investors hope that the Ether price will soon be able to break the $ 5,000 threshold.
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