Bitcoin and Ethereum have been experiencing a downward trend in price, with Bitcoin falling for four consecutive days and Ethereum dropping for three. The decline occurred after Silvergate Bank confirmed it would be liquidating its operations, leading to a sell-off in the crypto market. As of writing, Bitcoin stands at $21,609.99, its lowest price since February 13, while Ethereum fell to its weakest level since mid-February at $1,530.43.
The recent sell-off has led to the 14-day relative strength index (RSI) falling to its lowest point since November 28, with the index tracking at 36.86 as of writing. If Bitcoin continues to remain above its floor at $21,600, there might be a chance of prices rebounding heading into the weekend. However, if the trend continues, there is a strong possibility that Ethereum may fall to a floor at $1,500.
Despite the recent decline, some remain bullish on Bitcoin and its potential growth. Ark Invest CEO Cathie Wood believes that Bitcoin’s price could increase by tenfold as institutional investors continue to embrace the cryptocurrency. She stated that institutional adoption is increasing at a faster rate than expected and that she is confident in Bitcoin’s long-term trajectory.
Many crypto experts also predict that the current sell-off may be a temporary correction, and the market may recover in the coming weeks. They suggest that investors should wait out the current market volatility and hold on to their cryptocurrencies for the long term.
In addition to institutional adoption, the growth of decentralized finance (DeFi) protocols and the rise of non-fungible tokens (NFTs) are other factors that could potentially boost the crypto market in the future. DeFi protocols have seen explosive growth in recent months, with the total value locked in DeFi reaching an all-time high of $40 billion in February. Meanwhile, NFTs are gaining mainstream acceptance, with famous auction houses such as Christie’s and Sotheby’s auctioning off unique digital art pieces for millions of dollars.
However, these developments also raise concerns about the environmental impact of crypto mining, as the high energy consumption of mining operations is a significant contributor to carbon emissions. Some argue that the crypto industry needs to shift towards more sustainable mining practices or explore alternative solutions such as proof-of-stake protocols.
In conclusion, while the recent sell-off may cause short-term uncertainty, the long-term outlook for the crypto market remains positive. Institutional adoption, the growth of DeFi, and the rise of NFTs present significant opportunities for crypto investors, and the market may recover in the coming weeks. However, the industry must address concerns about the environmental impact of crypto mining to ensure its sustainability and continued growth. As always, investors should do their research and exercise caution when investing in cryptocurrencies.