It is no news that the cryptocurrency sector is highly volatile, and influencers predict the industry price movement. This is why every investor or trader updates themselves on financial news and activities. Somehow, US President Biden has become a potential influencer in the cryptocurrency sector. Cryptocurrency’s popularity has been booming in the US recently while its ecosystem is also getting strengthened. It has become a popular culture to diversify many crypto programs, including non-fungible tokens (NFTs), digital money, or exchanges. All these are enough to get the White House’s attention, as the President stated there’s a need for developing digital assets. The executive order from President Biden was enlightening, as more people realized the need to get involved in digital currencies. Hence, it is safe to say that the Ethereum price might bounce back earlier than expected.
Ethereum had experienced a sharp price dip since the beginning of the year. This confused many investors, but it was also the case for most other digital currencies. Unfortunately, the same Ethereum price was US$4,100 on 27 December but it fell to near US$2,400 by the end of January 2022. Ethereum’s price rose to US$3,500 recently, and it is now hovering around US$3,200. The 6% increase in Ethereum’s price in the mid of March when it moved up from the US$2,800 level could be because of President Biden’s comment. Despite the sharp decline in Ethereum prices that we saw this year, crypto experts predict that the Ethereum price can reach US$12,000 before the year ends. Meanwhile, this is the first time the President is making an open statement that directly affects Ethereum’s price.
The government has also shown a keen interest in cryptocurrency generally. They are proposing the creation of a government-issued digital currency. However, there are many misconceptions surrounding the government’s willingness or decisions. Since cryptocurrencies are completely decentralized, the government being involved will give them an edge or advantage. Meanwhile, the government decision has started penetrating the market space. It has moved Ethereum prices up the scale alongside the users. Hence, more people have been added to the crypto community.
Contrary to other prominent influencers in the market, President Biden’s executive order is far from being a game plan. The focus was to encourage citizens to buy more digital assets. It will also help the country’s economic flow. The President’s statement also proves the U.S. government’s endeavors to keep improving their technology sector. The White House is also employing means to improve financial efficiency.
Reactions from Ethereum Investors
While the Ethereum price is currently low, it is the best period for investors to study the market well. Volatility often occurs in the crypto industry, and it only takes patience to scale through or yield high profits. However, many investors are worried that they will generate a profit after holding Ethereum coins for a long time. Ethereum’s price is not always perfectly predictable. Even experts can only predict a possible outcome while missing one or two crucial details.
Generally, cryptocurrency investment is best for people ready to diversify their portfolios. There are huge losses and sometimes wins. Your experience will depend on your expertise level and willingness. Hence, users are encouraged to risk with long-term investment in mind. Also, cryptocurrency is not delusional, wherein people are scared of taking risks and boosting their digital assets.
Understanding the volatility of Ethereum prices is an excellent deal for millennials. Millennials are also encouraged to study the subject before investing.
Users should also learn to focus on other activities in personal engagements. It could be frustrating when you have all your money in cryptocurrency and cannot afford to take care of other responsibilities. Experts advise that naive individuals should hold their coins rather than trade losses. Trading may lead to huge losses for an inexperienced individual. Holding does not only give more opportunities for the right trades but also increases the chances of getting a high ROI. To properly understand Ethereum’s price, users should understand how the smart contract works and its other forms of credibility.
In conclusion, crypto and the stock market currently face high volatility because of the ongoing war. Buyers and sellers are unsettled, leading to the inability to trade consistently. Also, mainstream adoption is blocked due to unsettles in these parts of the world. If a war could affect the price, it is also possible that President Biden’s statement will spur the Ethereum price. If this eventually happens, it will favor most investors or traders.
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