Cryptocurrency market has seen a lot of activity in the past year. bitcoin and ethereum are two of the most popular digital assets, and their prices have seen significant fluctuations. bitcoin is currently trading for around $16,729, while ethereum is priced at around $1,219. both assets are down significantly from their all-time highs in 2021 and 2022.
Price of both bitcoin and ethereum have been affected by the u.s. stock market in 2022. the federal reserve raised interest rates in order to get inflation under control, and investors generally sold u.s. equities, as well as bitcoin and other digital assets. bitcoin briefly reached over $18,000 in mid-december, but since then has not managed to hit $17,000. ethereum plunged from highs of over $1,600 to under $1,100 in november and only briefly climbed over $1,300 before dropping back in december.
And ethereum have been affected by various events in the past year. the collapse of major blockchain project terra in may and the bankruptcy of popular exchange ftx both had a significant impact on the price of cryptocurrencies. bitcoin and other digital assets are considered “risk assets”, more volatile in price than less risky assets, and every one of bitcoin’s quarterly candles was red in 2022, a bearish indicator for the asset.