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Bitcoin Price Revisits the $23,000 Zone as Fed Concerns Mount
Bitcoin has revisited the $23,000 zone as investors chew on the FOMC meeting minutes released on Thursday. At the time of writing, the largest crypto by total market cap was trading slightly higher at $24,375. The total volume of BTC traded in the last 24 hours has slipped by more than 11%, while its market cap inched slightly higher.
Fundamentals
Bitcoin price has been facing numerous challenges in its journey, among them government regulations and cyclical market patterns. The past market year has seen Bitcoin crash from its all-time high of $69,000, making it tough for the digital asset to skyrocket.
Even so, with the recent growth in momentum, experts seem optimistic, predicting that the cryptocurrency could jump to new heights in the near future. Even with minor setbacks, such as the removal of crypto-related commercials from the NFL Super Bowl and rising US inflation, traders remain optimistic about BTC’s future.
Bitcoin is becoming more popular every day with its integration into many payment systems and adoption as the legal tender in two countries, El Salvador and the Central African Republic. As such, Bitcoin’s future is likely to be bullish.
The recently released minutes by the US Federal Reserve saw the BTC price decline below the important level of $25,000. The minutes from the meeting of the Federal Open Market Committee (FOMC) suggested both hawkish and dovish sentiments among the members. Notably, there was no mention of a pause in the further hiking of interest rates.
According to the minutes, most Fed officials agreed on the importance of further interest rate hikes which would allow for appropriate risk management. Further interest rate hikes could lead to a decrease in liquidity and a strengthening of the US dollar. As a result, this could negatively impact the price of Bitcoin and other digital assets.
On the flip side, higher interest rates lead to a sell-off in the stock market and could create demand for alternative investments like Bitcoin as investors search for higher-yielding assets.
Bitcoin Price Analysis
The FOMC meeting minutes left investors cautious, failing to attract enough buyers to yield a rally. On the daily chart, the Bitcoin price has managed to remain above the 50-day and 200-day exponential moving averages (EMAs). Its Relative Strength Index (RSI) has continued to move lower, pointing to a decline in buying pressure.
Therefore, the BTC price is likely to continue moving lower in the short term but above the important support of $22,000. However, a move past the key level of $25,000 will have bulls targeting a fresh year-to-date high.
BNB price has noted significant gains over the past few days, surging past the psychological resistance of $300. The native cryptocurrency of the Binance Exchange has surpassed Solana to regain its position as the fourth-largest cryptocurrency by market cap. The digital currency has been rallying lately with a 7-day profit of more than 15%. Additionally, BNB has clocked a phenomenal gain of 38% in the month to date.
Binance Coin Outlook
BNB price has been on a strong bull run for the past week, breaking out of its consolidation. Even so, the asset has experienced a correction in its uptrend over the past 24 hours but remains above the crucial level of $300. BNB’s total market cap has decreased by 4% over the past day to $48 billion, while the total volume of the asset traded over the same period dipped by about 15%.
Over the past year, Binance Coin has had to cope with Fear, Uncertainty, and Doubt (FUD) on the back of the regulatory troubles of its underlying exchange. Earlier, the BNB price touched a low of $223.50, a few days after its former CEO, Changpeng Zhao, pleaded guilty to money laundering charges. However, the cryptocurrency has managed to rebound 46% in value since then.
The recent price rally has been associated with various positive developments in the Binance ecosystem, including the Introduction of the Isolated Margin Auto-Transfer Mode. This feature enables…
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
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