While May is usually a very profitable month for Bitcoin, the market fell 40% that year, the second worst value in history. This is indicated by Lukas Enzersdorfer-Konrad, COO of Bitpanda, who shared his vision in Spanish with Cointelegraph about what has happened in the crypto sector in recent days and the possible trends.
to????After the market bottomed out last week, the market is now swinging so it will probably take several weeks for it to stabilize againâ ????said Lukas Enzersdorfer-Konrad
“At times like these, individual investors should focus more on the long term rather than buying and selling with every slide in the currency,” he added.
Bitcoin tries to find support after the correction
to????Bitcoin has started to show positive movement on the daily chart, while the weekly chart shows signs of slowing down. After the recent crash, and despite its volatility, Bitcoin prices have soared more than 25% this year. It is worth remembering that the largest monthly decrease was recorded in September 2011. At that time, Bitcoin reached a minimum of almost 2 euros, which is hard to imagine given the current exchange rates, ”emphasized the COO of Bitbanda.
The fear and greed index for cryptocurrencies shows extreme fear
On the other hand, Enzersdorfer-Konrad referred to the fear and greed index of crypto currencies: “This indicator shows the emotional side of the behavior of the crypto currency market. On a scale from 1 to 100, the lowest scores represent extreme fear, while the highest scores represent extreme greed. At the moment the indicator is at point 23â ????.
This index tries to quantify the strength of the general sentiment regarding cryptocurrencies using various sources and convert these numbers into a number. Low numbers approaching extreme fear mean the market has bottomed out, creating an opportunity to buy at good prices, while extreme greed means the market is about to correct. The index peaked at 73 in May, a week before the decline, ”he added.
Ethereum closes the gap behind Bitcoin
The Bitpanda manager too Pointing to Ethereum, he claims it followed in the footsteps of Bitcoin prices but acted more resiliently than its “big brother”.
The price and trading volume of ETH are increasing and it’s getting closer and closer to BTC in terms of market capitalization. The total value of Ethereum is around 230,000 million euros, while the market value of Bitcoin is now around 540,000 million euros.
– Ether is around $ 2,000, 42% below its peak, but still up 250% so far this year. Ether is more volatile than Bitcoin because it has a smaller market capitalization and is less institutionalized, which could change in the future as its market position grows, ”he said.
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