Bitcoin and Ethereum prices fell for a fourth straight day as investors continued to be perplexed by recently released, frequently conflicting economic indices and business earnings reports.
This comes as markets struggled to understand the U.S. Federal Reserve’s (Fed) minutes from the Federal Open Market Committee (FOMC) meeting last month, which in the typically cryptic language of central bankers suggested that the Fed would keep raising interest rates but appeared open to doing so in the near future.
The CEL token, owned by bankrupt cryptocurrency lender Celsius Network, increased in value on Thursday and is currently trading for a significantly higher price than it did prior to Celsius running into financial troubles and stopping user withdrawals.
On June 12, when the troubled cryptocurrency lender stated that it was stopping withdrawals, the CEL token fell as low as $0.15. Its current price of $2.90 represents an increase of nearly 20 times in less than two months. At the time of publication, the old Terra UST token, now known as TerraclassicUSD, was also up 16%.
Short squeezes are abrupt price increases in embattled assets that push short sellers to cover their holdings by repurchasing them at a higher price. After Celsius’ problems, many investors bet on a further decline in the value of the cryptocurrency by shorting it on exchanges (listing sell orders). Analysts advise traders to use caution when trading such tokens.
The price of BTC was recently around $23,347, modestly down over the previous 24 hours, and far below the $25,000 mark, it achieved on Sunday for the first time since late spring. After repeatedly crossing $2,000 over the previous week, ETH was recently changing hands at roughly $1,861, up 2% over the same time period.
The Merge, which will convert the Ethereum blockchain from proof-of-work to the quicker, more energy-efficient proof-of-stake protocol, has been the subject of intense expectation in recent weeks, sending the second-largest cryptocurrency by market capitalization skyward. While the majority were trying to recover, other cryptocurrencies were trading in the red.
At the time of publication, EOS( EOS, +5.17%), Gnosis(GNO,+13.40%), Bitcoin Standard hashrate token(BTCST, +6.01%), Kyber Network Crystal (KNC, +5.01%), and Secret (SCRT, +6.10%) were all up in the last 24 hours.
After five days of massive price gains, ABBC coin (ABBC) remains a top gainer on the weekly chart. ABBC is up a whopping 327% in the past seven days, although it is down significantly in the last 24 hours.
Joe Orsini, director of research at Eaglebrook Advisors states : “Things under the surface in the macro situation, have started to feel like they are improving. I wouldn’t take too much into the short-term price action. We’ve had a great bounce. And let’s see what could happen over this quarter”.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
