Share
Mortgages
Credit Cards
Loans
Insurance
Banking
Financial Goals
Follow Us
Proof of Work vs. Proof of Stake: Ethereum’s Recent Price Surge Shows Why the Difference Matters
How the Latest Fed Rate Increase Could Impact Crypto Prices, Based on These 3 Charts
The Crypto Market’s ‘Catastrophic’ Meltdown Sent Prices Through the Floor. It Also Sent Regulators Into Action
‘Crypto Winter Could Be Over’ If Bitcoin’s Price Does This, According to One Expert
Hype Surrounding Ethereum’s Merge Pushes Price Up 40%. What Comes Next, According to Experts
June’s Red-Hot Inflation Report Rattled Bitcoin and Ethereum Prices. What That Means for Crypto Investors
The Crypto Market Is a Hot Mess. Here’s What Investors Should Know About How Cryptocurrency Actually Works
Binance Coin Price (BNB/USD) | Today’s Price
It’s Been a Boring Week for Bitcoin and Ethereum Prices. Don’t Expect It to Stay That Way, Experts Say
Avalanche Price (AVAX/USD) | Today’s Price
Senior Staff Writer
Alex Gailey is a journalist who specializes in personal finance, banking, credit cards, and fintech. Prior to…
Share
Things are on the up for cryptocurrencies, at least for the time being.
Bitcoin, the largest crypto, reached $24,000 on Friday — hitting a fresh new high in July as it continues to follow the rising stock market. Ethereum, the second-largest crypto, climbed above $1,700 and other cryptocurrencies were also trading higher on Friday.
The two largest cryptocurrencies are on track for their best month of the year. Bitcoin is up more than 20% in July and ethereum is up 50%, according to NextAdvisor’s crypto price data.
But after a dismal first half of the year, is the crypto market poised for a bull run in the second half? Experts say not quite, warning investors to remain cautious. The market could easily come crashing down again given the current macro environment, so it may not be wise take on risky bets right now.
“Many are warning we are not yet out of the woods from a macro perspective,” says Adrian Kenny, a senior sales trader at digital asset broker GlobalBlock. “A cautious thesis is a more logical stance to take in the current conditions.”
A lot happened this week that led to a rally in the crypto and wider markets in general.
Many big retail and tech companies — including Google, Apple, and Meta — revealed their second-quarter earnings, a factor that influences stock prices. The Federal Reserve raised interest rates by 75 basis points, but signaled it may slow down the pace of such rises. And an economic report revealed that U.S. GDP fell for a second consecutive quarter in a row. Though that follows a commonly understood technical definition of a recession, President Joe Biden and Fed Chairman Jerome Powell both said this week that the U.S. is not in a recession.
Experts say all eyes have recently been looking to how the Fed would respond to the threat of soaring inflation and a potential recession. Experts say the upward movement in the markets suggest that investors were already expecting those outcomes this week, and will likely continue moving higher in the short-term because investors have already priced in the bad news.
“The reaction has been very positive this week and the cryptocurrency markets once again tipped over the $1 trillion market cap once again,” Kenny says.
While this week has for the first time in over a month seen some market recovery, there is still “an undoubtedly considerable mountain to climb in terms of ‘normality’ or the hopes of a return to the highs of 2021 anytime soon,” says Kenny.
If you’re investing crypto for the long-term, the recent developments this week shouldn’t drastically alter your investment strategy. It’s simply a reminder that crypto assets are highly volatility and risky, particularly during times of economic uncertainty.
While there has been positive momentum in the crypto market this week, bitcoin and ethereum are still down more than 50% from when they reached their all-time highs last November. Given crypto’s history of volatility, prices will continue to drastically swing up and down — and it’s extremely difficult to predict with certainty where they’ll go next.
One thing is certain: there’s a gloomy list of long-term potential worries for the U.S. economy, so experts recommend playing it safe. Allocate no more than 5% of crypto to your investment portfolio and only put in what you’re OK with losing. Before putting any extra cash into the crypto market, always make sure your financial bases are covered — from your retirement accounts to emergency savings.
Thanks for signing up!
We’ll see you in your inbox soon.
Enter your email
Facebook
Twitter
Instagram
LinkedIn
YouTube
Tell us what you think
Did this article answer your questions?
Time is Up!
Let us know what questions you still have about this topic or any others.
Time is Up!
Thanks for your feedback!
Before you go, sign up for our newsletter to get NextAdvisor in your inbox.
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
Investing
8 min read
Student Loans
6 min read
Daily Rates
6 min read
Daily Rates
7 min read
At NextAdvisor we’re firm believers in transparency and editorial independence. Editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by our partners. We do not cover every offer on the market. Editorial content from NextAdvisor is separate from TIME editorial content and is created by a different team of writers and editors.
Subscribe to our newsletter
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
Follow us
© 2022 NextAdvisor, LLC A Red Ventures Company All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use, Privacy Policy (Your California Privacy Rights) and California Do Not Sell My Personal Information. NextAdvisor may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
Author
Administraroot
Related Posts
