Why Bitcoin and Ethereum Are In a Bullish Trend

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Last Updated on 6 November 2023 by CryptoTips.eu

Undoubtedly, Bitcoin and Ethereum have been in a wild motion lately, shooting up by 20% in the last week alone. And this sudden spark has made everyone more optimistic about the crypto world and how high it could go this year. Truly, it’s the perfect time for the cryptocurrency market and crypto enthusiasts.

Majority of the investors are turning to crypto as a safeguard for their wealth. But, could this be the rally of something bigger or is it just all hype? Well, let’s find out.

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Why Bitcoin and Ethereum are Bullish

Last year, the crypto world was in a spot. From FTX’s collapse, to other drastic collapses such as Terra Luna. And that’s just the major problems that we all got to hear about. This year it seems the stars have aligned for this market as the investors are opting to place their money in crypto.

Countries such as the US are in an economic crisis with the fear of a recession at the back of everyone’s mind. Leading the masses to look for alternative ways to hedge against inflation. On January 15th, the entire crypto market was in a bullish trend. More importantly, the market cap was over 2-trillion dollars representing a whole 0.53% increase. But in the next 24-hours, the market went down again by about 16%.

The reason why most people experts are bullish with Bitcoin is because next year is the halving of Bitcoin. This event is generally viewed as a positive move for Bitcoin’s price since it helps in increasing its demand and reducing the supply. More importantly, historically, halving as always been a good sign for Bitcoin.

On the other hand, Ethereum recently launched their ETH 2.0 version which was expected to push this network to the next level. However, because of all the negative press on crypto that was happening last year, it proved to be difficult for this coin to maintain a solid bullish trend. This year seems to be better for this network. ETH2.0 was designed to reduce the issues of scalability and gas fees which have plagued this network for the longest time possible. The 2.0 version will not fix all the challenges of Ethereum, but for now, it’s doing a pretty good job especially for developers in the network.

Aside from all that, US colleges are now actively teaching Bitcoin courses to their students. That will bring forth the next era where majority of the people will better understand blockchain and decentralization and that will lead to more engagement.

Will the cryptocurrency market crash again?

Some investors believe Bitcoin will likely crash again in the near future and that could lead to the crash of the entire market. With factors such as bitcoin’s mining issues, there’s a chance this could happen at any moment. These investors consider the current rise as a ‘bull trap’ which will later lead to an even bigger collapse. But with the rising interest rates and the tighter monetary policies, we do expect Bitcoin to bounce back up in the near future. The same goes for the dApps King, Ethereum.

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Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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