The Bitcoin price is stabilizing. Will a sustainable altcoin rally succeed now? What is the situation with Cardano?
Bitcoin rate current
Bitcoin was able to stabilize again in the night from Wednesday to Thursday. Currently, the largest and best-known currency is trading above the psychological 30,000 mark at $31,287, almost neutral compared to the previous day. Also for Cardano (ADA), the sixth most important currency by market capitalization can stabilize again at 0.33 dollars. Will a sustainable trend reversal succeed or will investors have to continue to deal with the downside risks?
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Bitcoin Price Chart
Source: IG Trading Platform
Bitcoin stabilizes – Cardano also gets a tailwind
The Bitcoin price is holding steady above the $30,000 mark on Thursday morning. After the price losses of the previous day, numerous short-term speculators have obviously used the setback to re-enter the market. However, there should be no talk of more than an attempt at stability. Until today, the price has not left its downward spiral that began on January 9. Further losses cannot be ruled out.
Cryptocurrencies remain battered overall
Investors are thinking twice right now about how to evaluate the recent rally in light of the uncertain mixed situation. Moreover, with the coronavirus variants and the challenging vaccination logistics, the uncertainty factors in the global stock markets are not abating. This circumstance could not least ensure that investors as a whole cash out in the environment of correcting stock markets, which could not least also affect cryptocurrencies.
The disputes between Brussels and the manufacturers of the vaccines are causing displeasure. A sluggish vaccination marathon in the euro zone is hitting the stock market, especially since further setbacks cannot be ruled out. Investors are in for a rip-roaring test at the end of the month.
Bitcoin, Cardano and Co under pressure in the run-up to the U.S. Fed
The slide in crypto prices had accelerated further on Wednesday in the run-up to the US Fed meeting. The rising US dollar in particular triggered potential for pressure. Investors were noticeably nervous in the run-up to the upcoming Fed meeting. A few hours before the meeting, fears grew that the U.S. Federal Reserve could scale back its bond purchases and communicate a premature turnaround in interest rates, but this was ultimately not the case. Because the U.S. Federal Reserve Fed had provided on Wednesday evening for no surprises. As expected, it left its interest rate level unchanged, with Jerome Powell nipping speculation about a reduction in securities purchases in the bud. However, further support failed to materialize.
Bitcoin is seen by many investors as a hedge against monetary and fiscal policy risks. However, should the economic stimuli be throttled, this is likely to be to the detriment of Bitcoin and Co. not least.
Bitcoin and Cardano: Here’s what could happen next
The cryptocurrency Cardano (ADA) remains in the clutches of the Bitcoin price to date. This dependence is not surprising in that bitcoin is also known as the guiding currency.
On the upside, this means that ADA should conquer the 40 cent mark as soon as possible to open up further upside potential. The upward trend that existed since November of last year is still in tact. Further follow-up purchases could take place soon. On the downside, setbacks to 20 cents are conceivable in the course of a larger sell-off, which also represents the trend high from the end of 2020. While the bitcoin rally is faltering, the altcoin bull market could soon pick up speed again.
For the Bitcoin price, the mental mark of $30,000 remains the measure of all things. This should be able to be maintained on a weekly closing price basis to trigger follow-up purchases.
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