Crypto Market Meltdown: Here's What To Watch For Bitcoin, Ethereum To Recover

Benzinga

Published Aug 20, 2022 13:24

Updated Aug 20, 2022 14:10

Crypto Market Meltdown: Here's What To Watch For Bitcoin, Ethereum To Recover

On Friday, cryptocurrency Bitcoin (CRYPTO: BTC) sold off sharply and fell to a low of $20,868.85.

By market capitalization, BTC is down by 13% in the last seven days and was rebounding on Saturday to $21,256.34.

Similarly, Ethereum (CRYPTO: ETH) price fell, falling by almost 18% in the past seven days, and trading at $1,630.26 on Saturday.

The downswing could be attributed to the high inflation data in Germany. According to the CME FedWatch tool, the probability of the U.S. Federal Reserve raising the interest rate by 75 basis points has increased to 44.5%, from 41% the previous day.

So far this year, cryptocurrencies have seen a major fall due to Fed rate hikes and ultra-high inflation.

Also Read: This Analyst Believes Bitcoin, Ethereum Will Surge To All-Time High Soon: Here's Why

According to the pseudonymous trader known as Rekt Capital, ETH needs to hold its position to recover from the current downswing. It could close as low as $1,550 and still recover.

The analyst says Bitcoin has lost the support of the 200-week moving average with the current crypto market meltdown. However, recovery is possible with the relief bounce.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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