BitcoinBitcoin, the world’s most popular cryptocurrency, has seen a significant increase in its price recently with a 2% increase. As a result, investors and traders are eagerly awaiting the next potential target for BTC. Bitcoin price declined during the day, which is believed to be the result of FOMC (Federal Open Market Committee) minutes release.
This information has created uncertainty in the market and may have contributed to the decline in BTC price.
Bitcoin in the Balance: How Interest Rate Hikes Affect BTC Price
On February 22, the US Federal Reserve released the minutes of its Federal Open Market Committee (FOMC). FOMC minutes revealed that the Fed intends to raise interest rates longer than many investors anticipated after the January Consumer Price Index (CPI) report, which showed inflation higher than expected, rising 0.5%.
As a result, the Federal Reserve increased the benchmark fed funds rate by 25 basis points. Investors are closely analyzing the Federal Reserve’s actions as market volatility increases.
The crypto market is facing a bearish phase today, with BTC/USD and other cryptocurrencies recovering following the release of the FOMC minutes, which suggest further interest rate hikes could be in the offing if inflation remains strong.
US Dollar Index Rises Keeping BTC Under Pressure
The minutes of the US Federal Reserve meeting showed that officials are committed to using a more gradual pace of interest rate hikes to address the issue of rising inflation, which has boosted the value of the dollar.
The DXY index, which is a measure of the US dollar’s value relative to a basket of other major currencies, is currently hovering near 104.50 and heading towards its weekly high.
There is a strong historical correlation between the movement of the DXY index and cryptocurrency prices. Typically, when the DXY increases, the value of bitcoin tends to decrease.
Bitcoin Beach Festival Makes Waves in Brazil With Crypto Education and Carnival Fun
The inaugural Bitcoin Beach event was recently held in Jericoacoara, Brazil, where the need for effective alternatives to traditional finance is more pressing than ever due to financial insecurity.
The event ran for three days from February 18 to February 21, 2023, and included six distinguished speakers as well as a carnival performance with a bitcoin theme. The aim of the event is to educate the youth of the country about bitcoin and its potential benefits.
Events that promote bitcoin education can help increase financial literacy and accelerate the adoption of cryptocurrencies by the general population.
Furthermore, recent data shows that demand for bitcoin payments is high in South America, and the Brazilian government is taking steps to integrate cryptocurrencies into the daily lives of its citizens.
US fourth quarter GDP growth revised up to 2.7%
The US Commerce Department has revised downward the country’s economic growth forecast for the fourth quarter of 2022 due to a decrease in consumer spending and a rise in the Federal Reserve’s favorite inflation metrics.
New figures show that inflation-adjusted gross domestic product (GDP), which represents the total value of all goods and services produced in the US, grew at an annual rate of 2.7% during this period. This is lower than the 2.9% growth reported earlier.
In the fourth quarter of 2022, the US economy expanded at an annualized pace of 2.7% quarter-on-quarter, slightly below the advance estimate of 2.9%. Consumer spending rose 1.4%, the smallest increase since the first quarter of 2022 and less than an advance projection of 2.1%.
Typically, when the US economy is strong, bitcoin prices tend to rise as investors seek alternative assets. However, other factors such as global economic conditions, government regulations, and investor sentiment also influence bitcoin prices. Tracking these factors and overall market conditions is essential in order to accurately predict bitcoin price direction.
bitcoin price
As of now, the live price of Bitcoin Standing at $24,050 with a trading volume of $31 Billion in the last 24 hours. It currently holds the top position on CoinMarketCap, with a live market capitalization of $464 billion.
On the 2-hour time frame, bitcoin is displaying an ascending triangle pattern, with an ascending trendline providing support near the $24,000 level. If bitcoin price breaks below this level, the next support level is expected to lie near $23,400. Furthermore, both the RSI and MACD indicators are in the sell zone, adding additional selling pressure to bitcoin.
Bitcoin’s resistance is at $24,500. An increase in buying pressure could propel the price above this level and potentially trigger a breakout, paving the way for BTC to test the next resistance at $25,200.
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Cryptonews has released an in-depth analysis of the top 15 cryptocurrencies investors can consider for 2023. The reports provide valuable insights to help investors make well-informed investment decisions.
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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