It has been almost three months now that the price of the Bitcoin and Ethereum crypto assets appears to be fairly stable.
Following the rebound at the beginning of the year, which followed the bottoms of the last bear-market, a long phase of lateralization was triggered and is still ongoing.
Bitcoin’s price trend
As far as BTC’s price trend is concerned, the bottom of the last bear-market was reached in November 2022, when the price fell as low as $15,500.
By early 2023 it had risen only just above $16,500, so with a mini-rebound that simply served to keep it from staying on the lows.
However, in the first two and a half hearty months of the year it had risen a lot, even fairly quickly, to over $27,000 on 17 March. Since then, however, it has practically done nothing but lateralize around this level.
No less than three attempts to break through the $28,000 wall have occurred, but all three ultimately proved unsuccessful.
The first, around 10 April, was the most successful, as the price went as high as even over $31,000, but it lasted only about ten days, as it was back below $28,000 by the 20th of the same month.
The second occurred a few days later, between 26 April and 8 May, but failed to push above $30,000 except for a very brief moment.
The third, very tentative, occurred between 28 and 30 May, with a very short duration and a high reached below $28,500.
Apart from that, Bitcoin‘s price over the past two and a half months has always lateralized between $26,000 and $28,000, with small brief excursions below $26,000.
Ethereum’s price trend
A similar argument can be made for the price of ETH, although there are differences.
The first difference is that the bottom of the last major bear-market did not occur in November, but in June 2022, when the price fell all the way below $900.
By early 2023 it had climbed back up to $1,200, and until mid-March it had managed to push up to above $1,800.
Since then it has almost always lateralized around this figure, although in the days of the Sepolia update it had even managed to push above $2,100.
However, that peak lasted only a week, because it then returned below $1,900.
In other words, excluding the week after 12 April, it has been sideways within a range of $1,700 to $2,000 since the second half of March, although there have been very few days when it has approached $1,700 or $2,000.
Bitcoin and Ethereum: the price performance of the two crypto assets in recent days
Not much has happened in the past few days, although there has been a modicum of volatility.
For example, Bitcoin’s price had risen from $26,500 to $27,500, but then fell back below $27,000. Nothing precludes that it could return to $26,500.
As for Ethereum, the price of ETH had risen from $1,840 to $1,915, but then fell back below $1,900. Nothing precludes it from returning to around $1,850.
Although it may appear that there has been some volatility, in fact the price movements of BTC and ETH in recent days have all taken place within a very compressed range, which leads some analysts to believe that they are ready to break out. However, it is not quite clear in which direction they might go.
Bitcoin and Ethereum crypto price predictions
Right now the problem could be twofold.
In fact, according to several analysts, there may be a case for further upside, but there are also two burdens that seem to be preventing it.
The first one very trivially is the success of artificial intelligence-related stocks. For example, Nvidia’s stock seems almost to be in a bubble, as from $140 at the beginning of the year it had risen to over $300 shortly after mid-May and then jumped to $420 at the end of the month.
This apparent speculative bubble in artificial intelligence-related equities is draining capital from other risk-on assets, which then appear to be suffering somewhat. These could include BTC and ETH, but the bubble is expected to burst sooner or later.
The second burden is due to the fact that the US is also draining capital.
After the Fed, in March and April, with its Repos, now the US government is getting in on the act, ready to issue about $1 trillion worth of bonds in the market.
These bonds are expected to be placed on the markets shortly, and they should drain more capital, though perhaps mostly from risk-off assets. It is no coincidence that the gold price rally in May also stopped, if not slightly reversed.
All of this contributes to the lack of liquidity in the financial markets, or rather liquidity primarily on a few specific assets, among which Bitcoin and Ethereum are not included for now.
However, should the AI-related bubble deflate, as soon as the US has finished draining liquidity it is possible that the prices of risk-on assets could rebound. However, no one knows whether or not their market values will have declined further in the meantime.