By
Temitope Olatunji
April 24th, 2024
Bitcoin and Ethereum prices are going down while investors and traders are holding their breath in the run-up to the May 7 SEC hearing.
Though just a couple of days ago Bitcoin price was very close to reach the mark of $10,000, by now the token has dropped to $9,317 as informed by CoinMarketCap, which means a 2.72 percent value decline over the recent 24-hour time period. The crypto market reacted to these changes in Bitcoin price with more than $20 billion drop overnight.
The day before yesterday, on May 5, the average Bitcoin price was very close to reaching $10,000, lacking only $100 to achieve this mark. In some regions like Hong Kong, Japan, and South Korea, where the cryptocurrencies are traditionally traded at premium rates, the price of Bitcoin even exceeded $10,000. Nevertheless, the price didn’t manage to be fixed at the $10,000 level, as it almost immediately fell down losing nearly 3 percent becoming $9,600. Since that time, Bitcoin has lost another 3 percent.
However, such indicators as the Relative Strength Index (RSI) and Williams’ Percent Range (WPR), that reflect the technical aspect of Bitcoin life cycle, show a neutral zone, which means that within the last 48 hours it has not been overbought or oversold.
But if this negative short-term price trend for the dominant cryptocurrency continues and if Bitcoin proves to be not able to strengthen its position while its price is close to the mark of $9,300, there is a huge possibility that we will observe another 2 to 4 percent decline just in the nearest days.
The second largest cryptocurrency by market capitalization – Ethereum – is also losing its value. At the press time, according to CoinMarketCap, it is traded at $722, which means that it has lost over 7 percent of its value within 24 hours.
Nevertheless, crypto traders and investors are looking forward to finding out the results of the May 7th Securities and Exchange Commission hearing in the USA. If the Commission takes a decision that Ethereum is not a security as it is stated by its founders, the entire market will have a chance to recover.
The Securities and Exchange Commission have already stated that Bitcoin is not a security, and now Ethereum founders are trying to prove that, as, according to their preliminary work and analysis before Ether’s launch, this crypto should be not categorized as a security staying compliant with existing regulations.
If done so and all the positive expectations are met, we will observe an increasing demand from investors for such cryptocurrencies as Bitcoin and Ethereum. Speaking about Ethereum, we should mention that some experts are extremely positive about its future. For example, Alexis Ohanian, the co-founder of Reddit believes that Ethereum will be traded at as much as $15,000 at the end of 2018.
This year there are a lot of talks about the status of another cryptocurrency – Ripple – that is now traded at $0.82. While the company insists that this token can’t be classified as a security, some experts believe that Ripple as well as Ethereum should be viewed as unregistered securities.