Where are Bitcoin and Ether Headed?
Ever since the cryptocurrency industry gained prominence at the ending of 2020, cryptocurrency enthusiasts have had their eyes set upon Bitcoin (BTC) and Ether (ETH). As the year 2021 began, the crypto-enthusiasts have kept both cryptocurrencies in their keen sight.
While other cryptocurrencies have experienced a rise and fall since the beginning of 2021, both BTC and ETH have remained the top two largest cryptocurrencies. At present, there is no other cryptocurrency that has matched the market valuation and adoption rate for either of the cryptocurrencies.
This is the reason why the investors still look up to BTC and ETH, whenever they want to make a general perception around the crypto-verse. This is why the cryptocurrency investors were very concerned when both Bitcoin and ETH experienced a constant downtrend since May of 2021.
Although Ether experienced a downtrend starting mid-May, Bitcoin was also facing the same situation since mid-April.
For Bitcoin, the situation took a negative turn when the mainstream institutions started boycotting Bitcoin mined through environmentally hazardous energy sources.
One of the major hits Bitcoin took was when Tesla announced that it was discontinuing payments through BTC through its platform due to the same reason. This resulted in the price of Bitcoin plunging from $64.8k per BTC in mid-April, all the way down to $48k per BTC.
Then, the Chinese regulatory authorities dealt another low blow to the Bitcoin industry by initiating an all-out crackdown on cryptocurrencies. This resulted in the entire cryptocurrency industry getting shut down by the Chinese authorities.
The reason Bitcoin faced the highest level of impact was due to the Bitcoin mining farms closing down in China that were responsible for generating 64% of the total hashrate through Bitcoin mining.
This resulted in Bitcoin prices taking another low-blow and its prices went all the way down to $28k per BTC.
Then comes Ether that started facing problems with its operability, scalability, and feasibility, as Ether trades picked up by the end of 2020. Although Ether managed to survive until mid-May with the problems mentioned earlier, it really started losing its ground after that.
Before Ether ended up facing problems in mid-May, its price was also experiencing an all-time high of $4.4k per ETH. As a result of the downtrend, the price for ETH came all the way down to $1.8k per BTC.
While most of the investors lost their hopes in BTC and ETH, both cryptocurrencies had fixed in the making. The Chinese crackdown may have impacted the price of BTC in the initial run, it ended up solving the carbon-emission issue, bringing it down to zero.
This made BTC a safe cryptocurrency to trade once again, which is why its prices picked up in early July, and until today, its price has crossed the $50k per BTC barrier again.
As for Ether, the Ethereum development team deployed the hard fork for ETH2.0, addressing/fixing all the problems it faced with Eth1.0 operations. As the hard fork was deployed at the beginning of July, its price picked up the pace and as of now, its price is hovering around $3.3k per ETH.
This goes to show that Bitcoin and Ethereum are slowly getting back on track. Therefore, it would be wise for investors to start investing in both currencies before they end up losing the gains.