Bitcoin, ethereum and other major cryptocurrencies have had a strong start to the week, following stock markets higher as traders nervously watch for details of a long-awaited crypto bill.
The bitcoin price, jumping back over $30,000 per bitcoin last night, broke its longest-ever weekly losing streak even as crypto industry insiders issue serious “crypto winter” warnings. The ethereum price has also bounced but remains under the psychological $2,000 per ether level.
Now, one investor has issued a huge fourth-quarter bitcoin price prediction—though ethereum’s looming upgrade is causing concern for other crypto market watchers.
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“Bitcoin investors have reason to be cheerful after the cryptocurrency has snapped the longest weekly downtrend in its history,” Nigel Green, the chief executive of financial advisory group deVere, said in emailed comments, pointing to bitcoin’s correlation to the stock market as one reason for bullishness.
The bitcoin price first began falling late last year after the Federal Reserve announced it would begin to curtail its huge asset purchases and hike interest rates, dropping along with many high-risk tech stocks that had soared through the pandemic era.
“I believe that we’ll soon see a bull run that will lead to a significant bounce in the fourth quarter of the year for the world’s leading digital currency. Bitcoin will benefit from a stock market rally as investors move back into riskier assets.”
Elsewhere, ethereum’s long-awaited Merge upgrade that’s set for August and will see ethereum transition from the energy-intensive proof-of-work consensus mechanism used by bitcoin to proof-of-stake is causing concern for some in the crypto industry. The upgrade is also designed to help ethereum scale and reduce its eye-watering transaction fees.
Staking cryptocurrencies involves committing them to support a blockchain network and confirm transactions. The Merge upgrade would see ethereum “miners” replaced by “stakers.”
“Ethereum is in trouble and we don’t see a quick way out,” Martin Hiesboeck, head of blockchain and crypto research at trading platform Uphold, said via email, pointing to the growing number of decentralized finance (DeFi) hacks that are happening on the ethereum network as one cause for concern.
“The entire idea of staking ethereum was nonsense from the start, as we pointed out months before the first anticipated launch date for Merge last year.”
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“Regulation, which I believe is inevitable, would give more protection and, therefore more confidence, to both retail and institutional investors,” Green added.