The Federal Reserve predicted a recession, and the International Monetary Fund predicted a slowdown in the global economy. Is now the time to buy Bitcoin and Ethereum? Let’s look at their performance so far this year and analyst expectations.
Fed meeting minutes It indicates that the US banking crisis is likely to push the economy into recession this year.
The March FOMC meeting also noted the potential fallout from the Silicon Valley bank failure and broader problems, despite Vice President for Oversight Michael Barr’s statement that the banking sector remains “healthy and resilient.”
Internationally, things are looking bleaker. The International Monetary Fund has weather forecast Global growth will decline from 3.4 percent in 2022 to 2.8 percent this year. Developed economies are expected to experience a significant decline in growth, declining from 2.7 percent in 2022 to 1.3 percent in 2023.
With clouds on the horizon – if not a storm – is now the right time to buy Bitcoin and Ethereum?
Bitcoin has had a promising year so far. Markets started 2023 with low expectations, entering the new year amid slowing global growth and after the most disastrous year in crypto history. However, the price has increased by 65% since the beginning of the new year. Coin was also the best performing asset in the first quarter. Although the momentum has stalled somewhat, as the price has mostly bounced around the $28,000-$30,000 range since mid-March.
Yaroslav Ivanov, strategic director at ALTA, isn’t sure if the bears have left the market. A good start to the year could mislead investors, Ivanov believes, and advises caution. He predicts a small possibility that the value of Bitcoin will reach $40,000 by the end of 2023. While also stating that the potential drop could be seen as an opportunity to get Bitcoin at a discount.
Meanwhile, Denis Trapezenko, a trader analyst at Vekus Mining Development, expects Bitcoin to start 2024 at levels close to current prices, and expects its price to move within support and resistance areas from $19,592 to $48,700 until the end of the year. 2023.
Industry experts have made various predictions for the price of Ethereum in 2023, with Raoul Pal, CEO of Real Vision Group, predicting that it could reach $20,000. Although most other analysts were more conservative. According to cryptocurrency trader Michael van de Poppe, Ethereum can go up to a range of $2,700 to $3,000 in the coming months.
Twitter analyst “Wolf” believes that Ethereum may reach $3,500 by the end of summer 2023. In a tweet on April 3, Wolf criticized the “bullish bias” and said that any decline in Bitcoin’s rally is “simply temporary” and “doesn’t change the overall outlook.”
ETH is up nearly 53% this year, but its climb saw a dip in February and March. The price is currently around $1,859.
Ethereum is also the leading platform for developing smart contracts and DeFi applications. Its overall market performance reflects the widespread adoption of DeFi and Web3. This month, the total value of the locked platform (TVL) reached record levels of nearly $10 billion, according to L2Beat.
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