Bitcoin, the world’s largest cryptocurrency by market capitalization, recently crossed the $22,000 price level, which has reignited discussions about the digital asset’s future prospects.
While bitcoin has seen several price increases in the past, this recent surge has come amid unprecedented institutional investor interest and increased mainstream adoption.
This has resulted in analysts revising their bitcoin price predictions, with some predicting a continued bull run, while others are more cautious in their outlook.
Bitcoin surges in response to a surge in retail sales
Retail sales in the United States unexpectedly rose 3% on a monthly basis in January 2023, marking the biggest jump since March 2021 and beating market forecasts of 1.8% growth. This jump was followed by a 1.1% decline in December.
More generally, strong retail sales data indicates that the US Federal Reserve may take a more accommodative monetary policy stance, causing investors to move away from higher-risk investments like bitcoin and toward traditional safe-haven assets like gold.
El Salvador set to set up ‘Bitcoin embassy’ in Texas
El Salvador has launched plans to set up a “Bitcoin embassy” in the state of Texas, as announced by Milena Mayorga, the country’s envoy to the United States. In a tweet yesterday, Mayorga said she is engaged in discussions with Texas Deputy Secretary of State Joe Esparza regarding the proposal.
The Secretary of State of Texas has verified that he did indeed meet with the Representative of El Salvador in the United States with the intention of exploring possibilities for cultural and business exchanges. Nevertheless, the official has chosen to keep the details of the conversation confidential.
Reports indicate that El Salvador has purchased the aforementioned digital currency, as noted in tweets by the nation’s leader. Nonetheless, the authorities have refrained from disclosing details of the acquisition, much to the dismay of various human rights organizations, who have chastised President Nayib Bukele for his harsh crackdown on the country’s widely known street factions.
Despite the criticism, Bukele has gained a large following among the population of El Salvador.
Bitcoin on the rise, US CPI behind it?
The United States Consumer Price Index (CPI) rose 0.5% in January, driven primarily by increases in food and rent prices. Although the annual growth of 6.4% in January was slightly lower than the 6.5% recorded in December, it was still higher than the 6.2% forecast by economists.
The persistent rise in inflation is raising concerns, and if this pattern remains unchecked, it could have substantial implications for the wider economy.
Following the release of the US Consumer Price Index (CPI) data, bitcoin price is likely to trade higher towards $23,878. The cryptocurrency market is sensitive to macroeconomic indicators such as the CPI, and any unexpected outcome can have a substantial impact.
The US CPI was recently published, indicating a 0.9% increase in consumer prices in June, much higher than what analysts had predicted. Following the announcement, the bitcoin price experienced a rally, which could lead to further gains.
‘Rich Dad Poor Dad’ Author Provides Bitcoin Price Forecast: Insights Revealed
Renowned author of the bestselling book “Rich Dad Poor Dad,” Robert Kiyosaki advises investors to keep a close eye on recent layoffs at major corporations such as Google, Microsoft, Facebook and Amazon. With a staggering 2.3 million Twitter followers, Kiyosaki has further expressed his anticipation of a major market crash starting this month.
According to him, an initial decline in the value of all assets including gold and cryptocurrencies is expected.
From Kiyosaki’s point of view, the Federal Reserve would have to resort to printing money to support the markets once the crisis took hold. This measure would inevitably lead to an increase in the national debt and a decrease in the value of the currency.
Kiyosaki also envisions that by the beginning of 2025, the value of rare assets such as gold, silver and bitcoin will increase significantly. Nonetheless, this news has had little effect on the price of bitcoin up to this point.
IMF cautionary message to El Salvador regarding the risks of bitcoin
The International Monetary Fund (IMF) has issued a cautionary message to El Salvador about the risks of bitcoin market risks and advocated for greater transparency.
El Salvador made history in 2021 as the first country to embrace bitcoin as legal tender, after which the government began a bitcoin buying spree.
Sadly, the public has not been made aware of the exact amount of bitcoins the government has received through its buying drive. During a recent visit to El Salvador, the IMF advised the country to take necessary steps to mitigate the potential risks of its involvement with digital currencies.
bitcoin price
in the present, live in the present Bitcoin The price is at $22,974, registering a trading volume of $25 billion in the last 24 hours. During this, the price of bitcoin has increased by about 4 percent. Notably, it maintains its position at the top of CoinMarketCap, boasting a live market capitalization of $443 billion.
Bitcoin continues to grow in popularity as a hedge against inflation and as a store of value, fueled by its growing mainstream acceptance and growing institutional interest.
Looking at the technical aspect, bitcoin is expected to face substantial resistance at the $24,300 level.
A favorable bullish breakout above this level could propel it towards $25,250, with another breakout having the potential to propel bitcoin price towards $26,850. However, in case of a bearish trend, immediate support for bitcoin could be located at $22,375 and $21,300.
bitcoin options
Cryptonews Industry Talk has published a review of the top 15 cryptocurrencies to keep an eye on in 2023, which aims to aid in investment decisions.
Apart from this, there are other investment opportunities with the potential for higher returns that may be worth considering.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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