Bitcoin
Bitcoin Price: BTC Could Bounce Higher on the Back of US CPI
Bitcoin price was trading higher on Wednesday, adding to Tuesday’s gains. The largest cryptocurrency by total market capitalization has been on a two-day rally against the backdrop of a lower inflation printout in the United States. At the time of writing, Bitcoin was trading 2.56% higher at $22,761.83.
Optimism Abound
Bitcoin price has been hovering above the important level of $22,000 over the past day as traders embraced a lower-than-expected decline in inflation. Data by the US Bureau of Labor Statistics on Tuesday showed that there was a significant rise in CPI in January on the back of the high shelter and energy costs.
Notably, in reaction to the US inflation data, the US benchmark 10-year Treasury yield rose to its highest level this year, boosting the dollar index. This saw US stocks and cryptocurrencies inch higher as investors brace themselves for a hawkish Fed.
Additionally, the easing of concerns over cryptocurrency regulations has offered significant support in the crypto sector. According to data by CoinMarketCap, the overall crypto market cap has increased 2.78% over the last day to $1.05 trillion. Bitcoin’s dominance has also risen over the last day.
As such, Bitcoin is expected to extend its two-day rally but with a slow grind. The digital asset is expected to move higher but is likely to remain below the important level of $23,000.
Bitcoin Price Analysis
Bitcoin price has been steadily hovering above the $22,000 level over the past day after receiving a bullish push from the market. The crypto leader has climbed by more than 4% over the past 24 hours, pointing to a strong bullish momentum.
On the 4-hour chart, BTC has managed to move slightly above the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) has moved higher into the neutral level. Therefore, in the short term, I expect BTC to trade within the tight range of $22,000 and $23,000.
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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