Currently, the price of Bitcoin (BTC)
$100,421
stands at $99,260, witnessing significant movement as Ethereum (ETH)
$2,017
returns to the $2,000 threshold. Recent announcements, such as AI executives presenting to Congress and the potential removal of chip restrictions announced by Trump, have offset the negative sentiment from the Federal Reserve and laid the groundwork for this upward trend. Nonetheless, expert Scott Melker signals caution, noting potential downturn risks.
Bitcoin’s Potential Decline
The news from China has bolstered appetite in the markets, creating a basis for an uptrend. However, recent statements from the Federal Reserve indicate only up to three interest rate cuts this year, adjusting expectations downward. Chairman Powell voiced concerns over inflation and perceived job market strength, indicating a reluctance to reduce interest rates anytime soon.
Moreover, the anticipated trade agreement with the UK today does not eliminate the existing 10% tariff, adding to potential reasons for a downturn. After his previous upward prediction, Scott Melker now suggests a possible return to $88,000 for Bitcoin.
“This is a key level. Should this resistance zone break (essentially reaching $100,000, as these levels are more ‘zones’), returning to an all-time high would be seamless.”
He added, “Taking a breath here would also be perfectly fine. A return to 88K would offer a solid buying opportunity.” In an environment where cryptocurrency investors have been “catching their breath” due to sustained declines for nearly six months, Scott’s prediction might not hold this time.
Ethereum Forecasts
With a major network update, the limit for staking ETH has been raised, allowing ETF issuers to stake customer assets more comfortably and share the returns. However, official approval for changes in ETF structure from the SEC is necessary beforehand.
Phoenix indicates that the long-standing downturn may finally be ending. If ETH maintains its projected course, altcoin investors might see relief after an extended period. The importance of today’s ETH closing cannot be overstated. Ending the over 150-day downtrend could revive all altcoins accumulated. A daily close above $1,905 is crucial.”
