• Bitcoin (BTC) and Ethereum (ETH), two of the most popular cryptocurrencies in the world, are still trading in the red below the $23,000 and $1,600 marks, respectively.
• The current bearish market sentiment has had a negative impact on the prices of both cryptocurrencies.
• Growing institutional demand for Bitcoin and Ether could fuel their appreciation in value.

Risk-Off Market Sentiment

The global cryptocurrency market has been in a downward trend for the past few weeks, with prices falling across the board. The main reason for this decline is the bearish market sentiment, which has had a negative impact on the price of Bitcoin. As people lose confidence in the market, they may choose to sell their Bitcoin holdings, increasing the supply and driving prices down further.

Critical Week Ahead

Bitcoin (BTC) has faced difficulties in rising above the $22,800 level, and if bears succeed in pushing it below its current level, then next support level would be $21,480. Ethereum (ETH) has also seen a lack of trading activity around its $1,500 mark indicating hesitation among buyers and sellers. This week is crucial as it will see nonfarm payroll statistics release and remarks by US Federal Reserve Chair Jerome Powell making it an important moment for markets.

Glimmer of Hope

There is hope amidst this dip as investors consider Silvergate suspension as a minor setback rather than a major negative event; hence this bearish trend may not last long as BTC and ETH have significant market capitalization intertwined with one another which can help each other out if there is any positive outcome for one cryptocurrency.

Institutional Demand

The growing interest of large financial institutions in Bitcoin and Ether is one more factor that could be contributing to their price appreciation. In recent months many major financial institutions have expressed interest in investing or offering bitcoin related services to customers which increases institutional demand leading to potential rise in values of both cryptocurrencies.

Regulatory Crackdown
Unfortunately intense government crackdown on digital currencies have led to decline in prices as these operate in legal grey area leaving governments worldwide striving to regulate them effectively undermining BTC’s value further