Cryptocurrency prices drop 4 % in a volatile market

The most popular digital currencies in the global market, such as Bitcoin and Ethereum, registered a drop in their prices of around 4 %, within the framework of a fairly volatile market environment exacerbated by the war between Russia and Ukraine.

Bitcoin, specifically, fell 3.7 % this Monday to settle at $ 38,967, while Ethereum stood at $ 2,906, 4.5 % less than the previous day. This new drop in bitcoin occurs just two weeks after recovering its price, from the beginning of the year, at $ 45,000.

Alejandro Zala, representative of Bitpanda in Spain, explained that the price of cryptocurrencies suffered a cut last week “as a result of the reported figures for inflation, which were quite high, in addition to the situation of the pandemic due to the COVID-19 and the consequences that have been left in the confrontation between Russia and Ukraine in the cost of energy.

Market consolidation

Some experts in the crypto market also analyze the behavior of cryptocurrencies in recent days and admit that these “assets could be facing a market consolidation phase after the volatility recorded since the outbreak of the war in Ukraine.”

Diego Morín, an IG analyst, stated that the variations in the price of digital currencies “could be due to the Easter holiday period, which would have caused a ‘certain drop’ in the volume traded.”

Javier Molina, spokesman for eToro in Spain, said that Bitcoin maintains its weakness in its price that ranges between “35,000 and 45,000 dollars, with an inability to maintain the level of 40,000 dollars, but if it loses its level of 38,000 dollars, the next support It would be at $ 35,000 and there the asset would have its first great test.”

On the other hand, Morín believes that Ethereum is moving “within a descending channel” and with the current market situation, investors do not seem to have the purchasing power to boost its price.

M. Rodríguez

source: europapress.es