Late on Friday, Bitcoin experienced an increase in value, reaching nearly $26,800 after having dropped below $26,000 for the first time since March on Wednesday night. Bitcoin had been on a downward trend since its peak on April 14, when it reached $31,019 – the highest it had been since June of the previous year. Since May 5, Bitcoin has experienced a further decline from its $30,000 value, which was caused by a transaction backlog and resulted in a sharp decrease in price on May 8. As of now, the world’s largest cryptocurrency has experienced a decline of approximately 62% since the beginning of this year.
On Friday, Ethereum rebounded to $1,836 after having fallen to $1,763 late on Wednesday night. Ethereum had reached its highest level since May of the previous year on April 16, when it peaked at $2,139. Additionally, it surpassed the $2,000 mark for the first time in almost a year on April 13, following the implementation of its Shanghai upgrade to a proof-of-stake network. As of now, the second-largest cryptocurrency has experienced a year-to-date increase of approximately 53.4%.
Investments in digital assets are known for their high volatility. Although the fundamentals and technical indicators of cryptocurrencies may vary, investors should prioritize the same key objectives. The first objective is to ensure protection by being aware of when it is necessary to sell, cut losses, or capture profits. The second objective is to be prepared to benefit from any potential rebound in the cryptocurrency’s value.
Cryptocurrencies were initially expected to serve as a hedge against inflation; however, they have not fulfilled this promise and have instead followed the trend of the broader indexes. To stay informed about daily market trends, it is recommended to read The Big Picture and Market Pulse.
