Ethereum and Bitcoin prices are plunging and some experts believe it could fall even further.
In the last 24 hours, the two major cryptocurrencies have depreciated by as much as 10% with bitcoin hovering around $31,000 and ethereum around $2,300.
However, Wendy O, a crypto-expert, pointed out in a video that the depreciation of the first cryptocurrency to appear on the scene could fall below $30,000, something not seen since July last year.
Tough days for bitcoin
“Bitcoin could potentially have a mini bounce to $35,000, but unless we break the trend line at about $37,000, I am contemplating its value at $29,000 in the coming weeks or week,” he stressed.
Macroeconomic uncertainty rocked cryptocurrencies at the start of the week and bitcoin hit its lowest point in more than a year.
Like the stock market, the cryptocurrency universe also succumbed since last week after the Federal Reserve announced its biggest interest rate hike in more than two decades.
Bitcoin’s big drop is just a reminder to investors that cryptoassets are accompanied by extra risk and volatility, especially in times of economic and political uncertainty.
To this day many investors who last year opted to get into the cryptocurrency business are losing money.
Another example, is Ethereum and its tendency to keep pace with Bitcoin, as it is down 18% in the last week.
Under this scenario, most financial experts recommend investing less than 5% of your total portfolio in cryptocurrencies.
Against this, they urge people to save for an emergency, put money away in a retirement account or pay off a high-interest debt.
However, for those who already have their savings invested in cryptocurrencies such as Bitcoin, it is advisable to wait until they stabilize a little, because getting rid of them at this time will represent a greater loss.