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Factors driving the Current price of Bitcoin and Ethereum

In recent years, cryptocurrencies like Bitcoin and Ethereum have become increasingly popular, with Bitcoin being the most well-known and widely used. Since they were first created, the value of these digital assets has grown a lot, which has attracted investors and traders from all over the world. In this article, we’ll talk about the current prices of Ethereum and Bitcoin and some of the things that affect them.

The price of bitcoin today

The bitcoin price today dated March 29, 2023, is $ 28,279.80. This is an increase of 3.69 percent in the last 24 hours and it is 40.9 percent less since the

start of 2022. Bitcoin has a market cap of $549 billion, which makes it the most prominent cryptocurrency by market cap.

Things that affect the price of Bitcoin

Over the past year, there has been a significant rise in the number of institutions that use Bitcoin. Bitcoin is now on the books of big companies like Tesla, Micro Strategy, and Square, and many more are likely to follow suit. This has made more people want Bitcoin, which has helped drive up its price. Only 21 million Bitcoins will ever be mined, so there will never be more. As more people become interested in Bitcoin, fewer are available to buy, which causes the price to go up.

Attention from the media

The media has done a lot to make people more aware of Bitcoin. As more people learn about the possible benefits of cryptocurrency, the demand for Bitcoin has grown, driving its price.

Price of Ethereum Today

The ethereum price as of March 29, 2023, is $1796. This is an increase of 1.27 percent in the last 24 hours which is 47 percent less than the start of 2022. Ethereum has a market cap of $218 billion, which makes it the second-largest cryptocurrency by market cap.

What affects the price of Ethereum

Ethereum isn’t just a currency; it’s also a platform for building decentralised applications (apps) and smart contracts. Ether, the cryptocurrency used on the Ethereum network, gets more valuable as more developers build on it.

Growing DeFi Ecosystem

Decentralised finance (DeFi) has become very popular in the past year, and Ethereum is at the center of this trend. On the Ethereum network, many DeFi projects are built, and as the ecosystem grows, so does the demand for Ether.

Upgrade to EIP-1559

When the EIP-1559 upgrade to the Ethereum network happens, the price of Ether is likely to go up. With this update, a new fee structure will help lower transaction costs and improve the network’s work. Even though Bitcoin and Ethereum’s prices are high right now, it’s important to remember that they can change anytime. Cryptocurrency markets can be tough to predict, and prices can change quickly based on news, market sentiment, etc.

Still, investors and traders are interested in cryptocurrencies like Bitcoin and Ethereum for many reasons. For one thing, they have a high degree of decentralization, meaning no one or no group controls them. This can be appealing to people who worry about the government going too far or the possibility of financial censorship.

Cryptographic algorithms and blockchain technology make it possible for cryptocurrencies to be very safe. Transactions on the blockchain are permanent and can’t be changed, which can help stop fraud and other types of financial crime. Lastly, cryptocurrencies can have a high level of liquidity, making them easy to buy and sell. This can be especially helpful for traders who want to profit from short-term price changes on the market.

Investing in cryptocurrencies does have some possible downsides, though. Volatility is one of the most significant risks because it can cause big losses if prices drop quickly. Also, the rules and regulations around cryptocurrencies are still changing, which can make investors and traders nervous. Even with these risks, many people are still optimistic about how Bitcoin and Ethereum will do in the long run. These assets will become even more valuable as the world becomes more digital and spread out.

Conclusion

The value of Bitcoin and Ethereum has increased significantly in the past year due to several factors. Bitcoin’s price has increased because more institutions are using it, there aren’t enough, and the media is talking about it. More use cases, a growing DeFi ecosystem, and the upcoming EIP-1559 upgrade have supported Ethereum’s price.

Investing in cryptocurrencies comes with risks like price fluctuations and uncertainty about how the government will handle them. But people willing to take a chance on Bitcoin and Ethereum could profit from them.

 

 

 

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