According to analysts at CoinDesk Indices, crypto traders and investors are perplexed about the future of cryptocurrency value due to mixed signals at the start of the week and the impending danger of stagflation, a time of high inflation and low asset growth in the US market.
Experts warn investors of growing pains due to inflation as they comment on a weaker-than-expected US GDP of 1.6% and a higher core personal consumption expenditure (PCE) index of 3.4%.
On April 29, the price of the most valuable cryptocurrency by market cap fell to $61,900 to $62,400, which is close to the values seen in mid-March.
Bitcoin lost around 6% of its initial value on the weekly timeframe. The loss in value over the last day is about 2%.
After falling 14% from its mid-April levels, ether is now trading between $2,800 and $3,200. While Bitcoin’s price is notoriously volatile, Ether’s price has been relatively stable over the past two weeks, staying between $3,125 and $3,260.
In light of this, the market capitalization of all digital assets dropped 2.5% to $2.31 trillion.
In a previous post, the Bits.media platform analyzed in depth the factors that are limiting the price increases of Ethereum and Bitcoin.