The crypto market is still suffering from the bearish trend in September 2022. Many altcoins dropped by 95%, while its king has bounced back from a local bottom of $900. After a drop of 65%, ETH has reached $2k, which is more than 2X. At the same time, BTC’s highest local point was $25k. Is it good or bad? Let’s ask specialists.
Read on to see the current situation on the market and decide whether you should swap ETH to BTC.
How Is BTC Coping with the Challenges of 2022?
2022 is one of the most challenging years for BTC. As of the beginning of autumn 2022, Bitcoin is traded in the range of $19-20k. During the crypto winter, BTC has not yet fallen to the possible local minimums indicated by world experts. Many believed that the cyclical bottom of Bitcoin may be at the level of $10k. However, neither the Terra crash nor raised interest rates didn’t influence BTC that hard.
Analyzing the Price Trajectory
The price of digital gold has been declining since the beginning of this year. The coin reached its all-time high of $69,000 in November 2021. By today, late September 2022, it was traded at $19,500. The price of Bitcoin has fallen below $20,000 several times this summer and is struggling to maintain this milestone.
The Future of Bitcoin Blockchain
Since BTC is an open-source project run by the community, there is no roadmap. Still, from time to time, we witness both minor and major updates. Unfortunately, as of today, there are no announcements regarding future changes/updates/improvements. Therefore, its price will only be influenced by external factors.
The largest update in the last 5 years was held in 2021. Taproot it is a softfork to improve Bitcoin scripts and increase privacy and efficiency.
How Is ETH Coping with the Challenges of 2022?
A number of cryptocurrencies, and ETH, in particular, fell sharply at the end of February this year after the outbreak of hostilities in Ukraine and due to the tightening of the monetary policy of the largest world’s economies. As a result, investors hastened to get rid of risky assets.
However, against the background of the announcement in July 2022 of the date of moving Ethereum to the proof-of-stake (PoS) algorithm, the cryptocurrency went up. Thus, we can’t say that 2022 is a bad year for altcoin #1.
Analyzing the Price Trajectory
Despite the good news (approaching The Merge), Ethereum couldn’t maintain its physiological level of $2k and fell to $1500 and squeezed to $900 in 2022. All this was real thanks to UST depeg and economic problems of major states.
Despite the rise in the price of ETH in July and August (from $900 to $2k), both on the eve of The Merge and after, the price of ETH fell below $1300. This transition, which eventually took place due to the aforementioned Merge upgrade, is part of the network upgrade to Ethereum 2.0.
According to many experts, a rise of 127% was caused against the backdrop of the coming transition from PoW to PoS. Unfortunately for ETH holders, even a successful upgrade couldn’t help the coin to overcome the resistance level of $1500.
The Future of Ethereum Blockchain
Technical analysis from the analytical service CoinCodex shows that as of September 19, short-term sentiment on the price of ETH was bearish.
The Wallet Investor resource expects that by the end of 2022, the coin will rise in price and trade at $2,240.9. By the end of 2023, Ethereum could rise in price to $3,320.2 and $5,493.8 by the end of 2025. The Ethereum price prediction for 5 years suggests that in September 2027, the coin will trade at $7,135.
After a successful migration, Ethereum continues to strengthen against Bitcoin. Yet the predictions of various renowned crypto experts about the future prices of BTC and ETH greatly differ. Hence, the winner in this rivalry will be known right after one of them overcomes the crisis.