Greg Waisman, co-founder and COO of fintech company Mercuryo, shares his insights on the daily price movements of Bitcoin (BTC) and Ethereum (ETH)
When the first quarter of 2021 came to an end, the leading cryptocurrencies – Bitcoin and Ethereum – began to experience a significant drop in prices. The decline has affected the entire market, as all currencies appear to be following the first two.
Bitcoin and Ethereum fall despite positive forecasts
Bitcoin and Ethereum have begun to see a significant drop in prices in the past few days, since Saturday, March 20. This is an interesting development, especially considering all the positive forecasts and the institutional interest that has been aroused recently.
There have been some notable negative developments, however, such as Norway recently saying that people should not turn to BTC as an alternative to traditional currencies. This came from the president of the country’s central bank, Oystein Olsen, who said that it is inconceivable that BTC will replace money controlled by banks, since it is very resource intensive, expensive and volatile.
Another thing worth mentioning is that India has proposed banning cryptocurrencies yet again, although that was almost 10 days ago, on March 14. The proposal was criticized, discouraged and there were numerous reports and analyzes saying why it is a bad idea. But despite that, it appears to have had a big impact on Bitcoin and Ethereum prices.
BTC and ETH prices fall in the last 24 hours
In the last 24 hours, the price of Bitcoin has dropped about 7%, from $ 58,387 to $ 53,476. The fall of the BTC encountered several resistances that tried to soften it and perhaps hold on to the currency, but so far, all have failed. The first was $ 57k, followed by $ 56k and finally $ 54,500. What appears to have stopped the currency – at least for now – is at $ 53,500, although it may just be a matter of time before it falls.
Given the forecasts, the currency’s stock-to-flow model and the furious interest of retail institutions and investors, this is probably not the end of Bitcoin’s highs. However, it represents an abrupt correction that should be taken as a reminder that BTC could fall at any time and that there are no guarantees in the cryptocurrency industry.
Ethereum itself, which recently did not receive much mention, has also experienced a price drop, as the world’s largest altcoin continues to follow Bitcoin’s example. In the past 24 hours, ETH was mostly trading sideways for around $ 1,785, with slight up and down fluctuations.
However, there was a big drop to $ 1,676, which came suddenly. It also ended quickly. And the currency has since tried to rise again, only to be stopped by resistance at $ 1,720, and then rejected at $ 1,660. At the time of this writing, she was at $ 1,682, unable to go beyond $ 1,700.