Bitcoin
Bitcoin Price Shies Away From 10-Month High Amid a Stronger US Dollar and Surging Oil Prices
Bitcoin price started the new month in the red despite ending the first quarter of the year higher after navigating its first banking fiasco and another regulatory crackdown. Even so, BTC still hovers around its highest level this year. At press time, Bitcoin, the largest cryptocurrency by market cap, was trading at $28,258.20, shying away from its intraday high of $28,500.99.
Fundamentals
Bitcoin price, as well as other cryptocurrencies, slipped on Monday but remained near recent highs. In the past 24 hours, Bitcoin price has been changing hands at around $28,300. Its market cap has also slipped over the same period, while the total volume of the coin traded edged higher.
Markets have been reacting to the latest announcement by the Organization of Petroleum Exporting Countries (OPEC) and its allies. OPEC+ announced on Sunday that it would slash its output by 1.16 billion barrels per day starting from May 2023. In the announcement, Saudi Arabia stated that the cuts would stabilize the oil market.
The announcement saw the oil prices surge by more than 5%, with US West Texas Intermediate (WTI) crude futures jumping by 6% to $80.27 per barrel and Brent crude futures climbing by 5.88% to $84.58 per barrel. However, the Bitcoin price inched lower on the back of the announcement, hitting an intraday low of $27,560. The soaring oil prices threaten to stoke inflationary pressures, prompting the Fed to impose more aggressive measures. Higher inflation rates would stir up pressure on risk-sensitive assets such as stocks, and especially cryptocurrencies such as Bitcoin.
The US Dollar Index has recently shown signs of growth, hinting at a strengthening of the United States’ official currency. A stronger US dollar can create headwinds for risk assets such as digital assets. An increase in the valuation of the US dollar could improve investors’ confidence in traditional financial institutions, shifting their focus away from risk assets. Consequently, this would lead to a decrease in demand for cryptocurrencies such as Bitcoin, prompting a drop in their prices.
Bitcoin Price Analysis
The daily chart shows that the Bitcoin price has been cruising slightly below its 10-month high for the past few days. Even so, the crypto leader has managed to remain above the 25-week and 50-week moving averages, as well as the 50-day and 200-day exponential moving averages.
Its Relative Strength Index (RSI) has inched lower but remains above the neutral zone. The Moving Average Convergence Divergence (MACD) indicator is bearish. As such, the Bitcoin price is likely to decline slightly before bouncing back higher. Even so, I expect the BTC price to remain above the crucial support level of $26,500.
BTC Price Chart
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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