Is the winter over for Bitcoin, Ethereum? Should you buy?

Cryptocurrency markets have reclaimed the $1 trillion mark after over two months, providing relief to long-term inventors who witnessed the market wipeout over $2 trillion wealth in less than 10 months. Memecoins, Layer 1 blockchain network tokens, other utility tokens along with Bitcoin and Ethereum have shown uptrend in the past two days after a long winter. This begs the question, have the markets bottomed out, and is this the right time to invest?

The crypto markets

The global cryptocurrency market cap has gained 2.50 per cent and the global cryptocurrency market cap stands at $1 trillion. In the past two days, Bitcoin has gained over 5 per cent, Ethereum is up over 10 per cent and memecoins like Dogecoin and Shiba Inu have also witnessed double digit recovery. Solana, Cardani, Avalanche have also rallied in double digits.

The CoinDCX Crypto research team told Business Today, “Bitcoin and Ethereum surpass the important price resistances of $20k and 1.5k respectively.”

They further added, “Roughly $1.15 billion worth of liquidations took place over the last 24 hours, with around 90% of that figure denoting short positions as markets showed bullish signs.”

Why did the markets rally?

As per the CoinDCX research team, the momentum in the US stock markets coupled with predictions of ease in US Fed rate hikes caused the current rally. 

“Positive earnings reports in the US stock market clubbed with the hopes that the FED might ease on its relentless plan of aggressive interest rate hikes led to a rally in equity and crypto markets alike with the overall crypto market cap exceeding $1 trillion once again,” they said.

Mahin Gupta, founder of Liminal, a digital wallet infrastructure platform, noted that the rally could also be attributed to positive earnings results by crypto companies like Coinbase and Microstratergy.

He said, “The rally was because of the strong third-quarter earnings reports, which gave a much-needed push to investor confidence. The listed crypto-centric companies like Coinbase and Microstrategy also reported positive earnings, which created a positive sentiment within the crypto community.”

Is this the right time to invest?

Despite the positive momentum in the markets, experts believe the crypto markets have not bottomed out and investing right now would not be the right decision.

Vaibhav Gupta, active investor in Web3 startups told Business Today, “I wouldn’t say crypto markets have reached ultimate bottom for the next bull run, but market always plays against us. So ,yes this might be short time bottom for a short-term rally and thus investors might look out for making quick gains.” 

He further added, “Investors and VCs have started taking small positions and making investments looking at this relief rally.”

Also Read: Crypto price today: Dogecoin rallies 16% after Elon Musk’s Twitter antics; crypto markets reclaim $1 trillion mark – BusinessToday

Also Read: Crypto price today: Bitcoin, Ether, Solana up; Cardano, Polkadot gain 9% as crypto markets in green – BusinessToday