Bitcoin, Ethereum Prices Plunge 10% as Crypto Market Sell-Off Continues

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The price of Bitcoin(BTC) fell by 12% on August 19, 2023, to its lowest level in over a month trading at $25900. The sell-off was triggered by a number of factors, including concerns about the global economy and the ongoing regulatory uncertainty surrounding cryptocurrencies.

The price of Bitcoin(BTC) has been on a downward trend since reaching an all-time high of $68,789 in November 2021. The recent sell-off has wiped out more than $200 billion in value from the cryptocurrency market.

Some analysts believe that the Bitcoin price could continue to fall in the near term, as investors remain risk-averse amid the ongoing global economic uncertainty. However, others believe that the cryptocurrency market is oversold and that the price of Bitcoin could rebound in the long term.

Reasons for BTC price decline

  • Concerns about the global economy: The global economy is facing a number of headwinds, including rising inflation, interest rates, and the war in Ukraine. These factors have led to a decline in risk appetite among investors, which has weighed on the price of Bitcoin.
  • Regulatory uncertainty: The regulatory landscape for cryptocurrencies is still evolving, and this has created uncertainty for investors. In particular, China has banned the use of cryptocurrencies, and the United States is considering imposing stricter regulations on the industry.
  • Technical factors: The decline in the price of Bitcoin was also likely due to technical factors, such as the break of a key support level.
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It remains to be seen how long the current bear market will last. However, the long-term fundamentals for Bitcoin remain strong, and the cryptocurrency is still seen by many as a store of value and a hedge against inflation.

Ethereum drops 10%

The price of Ethereum (ETH) fell by 10% on August 19, 2023, to a low of $1,660. This is the biggest single-day drop for ETH since January 2023.

The sell-off was likely triggered by a combination of factors, including the ongoing decline of the cryptocurrency market, concerns about the upcoming merge of Ethereum to Proof-of-Stake, and the recent hack of the Ronin Network, which saw over $600 million worth of ETH and USDC stolen.

Despite the recent sell-off, some analysts believe that the long-term outlook for Ethereum remains positive. The merge to Proof-of-Stake is expected to make Ethereum more scalable and energy-efficient, which could lead to increased adoption and demand for the token.

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Reasons for the decline of Ethereum price in the short term:

  • The ongoing decline of the cryptocurrency market. The entire cryptocurrency market has been in a bear market since November 2021. This has dragged down the price of all cryptocurrencies, including Ethereum.
  • Concerns about the upcoming merge of Ethereum to Proof-of-Stake. The merge is a major upgrade to Ethereum’s network. However, there are some concerns that the merge could go wrong, which could lead to a sell-off in ETH prices.
  • The recent hack of the Ronin Network. The Ronin Network is an Ethereum-based sidechain that was hacked for over $600 million worth of ETH and USDC. This hack has raised concerns about the security of Ethereum-based projects.

Reasons for the Ethereum price in the long term:

  • The merge to Proof-of-Stake. The merge is expected to make Ethereum more scalable and energy-efficient. This could lead to increased adoption and demand for the token.
  • The growth of the decentralized finance (DeFi) industry. DeFi is a rapidly growing industry that is built on Ethereum. The growth of DeFi could drive demand for ETH.
  • The rise of non-fungible tokens (NFTs). NFTs are a type of digital asset that is stored on the Ethereum blockchain. The growth of NFTs could also drive demand for ETH.
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Overall, the long-term outlook for Ethereum remains positive. However, the short-term price could be volatile due to a number of factors. Investors should carefully consider the risks before investing in ETH.

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About Camelia Bhattacharyya 202 Articles
Camelia is an intern for PanAsiaBiz studying at the Amity University, Kolkata [B. Tech (biotechnology)]. She is fond of writing on Science, Health, and Biotechnology topics.