Bitcoin and Ethereum Prices Could Be Affected by Interest Rates
According to market analyst Simon Peters, the prices of Bitcoin (BTC) and Ethereum (ETH) may experience volatility in the coming days. This is due to important data expected to be released by the US and UK, which could have an impact on the crypto markets.
Interest Rates: The Potential Impact on Bitcoin and Ethereum
One key event to watch out for is the Federal Reserve’s announcement on interest rates, scheduled for Wednesday, September 20. While it is widely anticipated that rates will not be raised this time, the market will closely follow what Governor Powell says during the press conference after the announcement. The British central bank will also announce its rate decision, which could further contribute to market uncertainty.
Cryptocurrencies are considered risk-on assets and are sensitive to rate expectations. Any indication of a tightening in tone could lead to bearish sentiment among investors.
eToro’s Analysis of Bitcoin and Ethereum
In recent months, Bitcoin has been hovering around $27,000, returning to this level multiple times after experiencing ups and downs. On the other hand, Ethereum has been oscillating around $1,800, with today’s increase bringing it back to $1,650.
It’s worth noting that when Bitcoin’s price increased in June due to news of BlackRock’s spot Bitcoin ETF, Ethereum’s price did not see as significant of a rise. Therefore, ETH started its decline in August from a lower level.
Bitcoin Outperforms Visa in Transaction Volume
In a notable development, the annual transaction volume on the Bitcoin network has surpassed that of Visa for the first time in history. However, it should be mentioned that BTC’s on-chain transaction volume includes technical movements of exchanges, making it not directly comparable to Visa’s volume which only includes card payments.
The average volume per transaction on the Bitcoin network is much higher due to the occurrence of large transactions. This highlights that Bitcoin is often used for larger transactions rather than everyday payments.
Ethereum Faces Issues with Holesky Testnet
On the Ethereum side, there have been problems with the new testnet called Holesky, resulting in a delayed launch. However, since this is a testnet used for testing purposes only, it did not have a significant impact on ETH’s price.
Holesky is set to become the testnet for the upcoming Dencun hard fork, which will introduce new features to expand the Ethereum blockchain. Despite the issues with Holesky, developers have assured that it will not affect the final launch of Dencun.
Hot Take: Bitcoin and Ethereum Brace for Volatility Amid Interest Rate Decision and Technical Challenges
Bitcoin and Ethereum are likely to experience volatility in the coming days due to important interest rate decisions and technical challenges. The Federal Reserve’s announcement on interest rates and the British central bank’s rate decision could influence market sentiment. Bitcoin has been hovering around $27,000 while Ethereum has oscillated around $1,800. Furthermore, Bitcoin has surpassed Visa in annual transaction volume, highlighting its use for larger transactions. On the other hand, Ethereum faced issues with its Holesky testnet launch but reassures users that it won’t affect the upcoming Dencun hard fork. As these events unfold, both cryptocurrencies are expected to face uncertain market conditions.
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