Bitcoin Price Prediction as $10 Billion Trading Volume Comes In – Where is BTC Heading Now?
The two biggest digital currencies, Bitcoin and Ethereum, have been in the news recently as their values continue to grow. The second-largest cryptocurrency internationally, Ethereum, recently crossed the $30,000 threshold and hit a multi-month high of $2,000.
Following the successful completion of the Shanghai and Capella (Shapella) upgrades, the price of Ethereum (ETH) has increased. The price of Ether reached a year-to-date high of $2,123 on April 14 thanks to this positive enthusiasm.
Because of the update, daily fees in the Ethereum decentralised finance (DeFi) ecosystem have increased by 30%, which has made the proof of stake (PoS) token economy deflationary. In the last 24 hours, this has led to an increase in income of 32%.
Therefore, the successful upgrade and encouraging development in the DeFi ecosystem have influenced the increase in ETH prices. Regulator and privacy worries persist, though, and they could eventually affect the value of cryptocurrencies.
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Impact of Ether Staking and Dominance on ETH Price Amidst Macro Factors
Despite some withdrawals from the Ethereum ecosystem, there has been an increase in deposits for staking Ether, which is encouraging for Ethereum’s future.
Additionally, the shrinking difference between the average staked price and the current Ether price suggests that the majority of stakes in the Ethereum ecosystem may soon be profitable.
Prices for Bitcoin and Ether are both rising, but Ether is becoming more popular than Bitcoin and other cryptocurrencies. The possibility of a U.S. sector crackdown and interest rate increases brought on by inflation, according to some analysts, still exists for an Ether price decline.
It is important to note that the FedWatch tool continues to predict that the Federal Reserve will increase interest rates at its meeting on May 3.
Despite these short-term roadblocks to prospective price rise, favourable regulatory clarity and a pause in interest rate hikes were considered as major factors supporting the demand for ETH. Ether’s price volatility is therefore expected to persist.
US Stablecoin Framework Draft Bill Released: Potential Impact on Crypto Industry
A draught bill from the US House of Representatives has been made public, and it may have effects for stablecoin issuers like Circle and Tether. The legislation would compel non-bank issuers to register with the Federal Reserve and offers a framework for stablecoins.
The new US Senate law, however, calls for two years of a prohibition on stablecoin issuance and severe fines and jail time for stablecoin issuers who don’t register. By imposing more regulation and scrutiny on the bitcoin sector as a whole, the law may damage investor sentiment.
Some experts, meanwhile, think it would also encourage institutional investors looking for regulatory clarification to adopt cryptocurrencies more widely. Investors should be mindful of the potential dangers and opportunities even if it is unclear how this measure will affect bitcoin values in the medium run.
The new US Senate bill, however, calls for a two-year prohibition on issuing stablecoins that aren’t backed by actual assets as well as harsh fines and prison time for stablecoin issuers who don’t register. The law may have a negative effect on investor mood by tightening regulations and raising scrutiny of the larger bitcoin sector.
However, other experts think institutional investors seeking regulatory clarification may potentially adopt cryptocurrencies more widely. The short-term effects of this bill on cryptocurrency values are still unknown, but investors should be mindful of the opportunities and hazards.
Bitcoin is trading in a limited range between $30,200 and $30,500 on Sunday, remaining sideways. On the upside, the BTC price may go towards the next resistance zone of $30,700 or $31,000 if a bullish crossover occurs above the $30,500 mark.
A bearish breakdown below $30,200 might expose the BTC price to the $29,900 or $29,700 levels on the downside.