Bitcoin
Bitcoin Price: Investors Jittery as Macro Factors Weigh on Markets
Bitcoin price was trading higher on Wednesday, breaking out from its two-consecutive day decline. At the time of writing, the largest cryptocurrency by market cap was trading 2.71% higher at $23,769.78. BTC has declined more than 2% in the past week but remains more than 43% higher in the year to date. Bitcoin’s dominance has edged higher over the past 24 hours.
Economic Sentiment
Data by CoinMarketCap shows that the global crypto market cap, as well as the total crypto market volume, has increased over the last day. This has been boosted by Bitcoin’s performance in the past 24 hours. Over the last day, BTC’s market cap has increased by nearly 2%, while the total volume of the digital asset traded climbed 12%.
Most cryptocurrencies have remained steady amid fears that the US Federal Reserve is likely to embark on its aggressive interest rate hike in a bid to fight inflation. Traders are betting that the Fed will increase its interest rates to 5.50% by the end of summer, higher than the central bank’s forecast at the end of December.
An interest rate hike to 5.50% implies at least two more quarters of percentage point hikes from March, as the current range is 4.50% to 4.75%. US Treasury yields have been rallying recently as investors await key economic data. the 10-year Treasury yield was trading at 3.985% on Wednesday, its highest level since the first half of November.
Economic activity in the manufacturing sector in February, the fourth consecutive decline, following 28 months of growth. The closely watched ISM Manufacturing Purchasing Managers Index (PMI) came in at 47.7% in February, 0.3% higher than January’s reading but below analysts’ estimates of 48%.
The Manufacturing PMI has been hovering below its lowest level since May 2020, in the last two months. Recent economic data shows that pressure from rising prices is continuing, and this could prompt the Fed to hike interest rates. As such, risky assets such as Bitcoin price could fall further. Investors have now shifted focus to the US Initial jobless claims data, set to be released tomorrow.
Bitcoin Price Analysis
The 4-hour chart shows that the Bitcoin price has been struggling to find direction amid various macroeconomic factors. BTC hit an intraday high of $24,000 earlier on Wednesday before pulling back. The digital asset is trading slightly above the 25-day and 50-day moving averages, while its Relative Strength Index (RSI) remains below the neutral zone.
Therefore, while the BTC price struggles to find direction in the short term, the next key levels to watch will be the resistance and support levels at $25,265.50 and $22,721.15, respectively.
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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