Trading forecasts and signals on cryptocurrencies for today, April 30
Bitcoin price declined to the $53,000 support level. Ethereum is consolidating at $1,725, and the price of XRP has strengthened to the value of $1.36. The total capitalization of the digital currency market was $2.05 trillion.
In April, the price of ETH rose by 41%, while the price of BTC fell by 8%. JP Morgan experts believe that the trend may continue. In a note to investors, the bank's analysts highlighted the difference between the assets. In their opinion, the first cryptocurrency is more perceived as a means of saving and competing with Gold, and ETH is the basis of the crypto economy and functions as a unit of exchange. To the extent that owning this share of activity is more valuable, the theory goes that ETH should outperform Bitcoin in the long run.
The bank's specialists see three reasons why Ethereum has outperformed the first cryptocurrency in terms of profitability in recent weeks: stable liquidity, less dependence on derivatives markets, and a strong demand base. ETH network has long been characterized by higher transaction rates in the public blockchain than Bitcoin. According to JP Morgan experts, this is probably due to increased activity in DeFi and other sectors. Earlier, analysts of the Kraken exchange allowed the price of ETH to rise to $15,000, while Bitcoin, in their opinion, will grow less than twice.
Fed Chairman Jerome Powell spoke about the possibility of issuing a state stablecoin and recalled that it is more important to do it correctly, and not to compete with others. Powell noted that the success of other countries in developing digital currencies has not changed the Fed's attitude. A more important criterion in his opinion is how the digital US Dollar will help ordinary citizens and will be integrated into the financial system. The head of the Federal Reserve expressed doubts that the digital yuan model is applicable to the United States. According to him, it simply will not work in the country, since the Chinese government has the ability to see every payment in real time. Recall that in March, Jerome Powell said that Bitcoin can replace gold, but not the US Dollar.
Trading Signals for Bitcoin, ETH and XRP on April 30
The forecast assumes a decline in the price of bitcoin to the levels of 52700, 52500 and 52000 USD. Ethereum will decline to the levels of 1710, 1700 and 1670 USD, and XRP - to the price values of 1.35, 1.32 and 1.30 USD.