BitcoinThe price is consolidating near $23,800, which is causing traders and investors to wonder where it is headed next. As the market continues to stabilize, analysts and experts are making predictions about what the future holds for the price of bitcoin.
In this article, we will take a closer look at the current state of the market and explore the various factors that could potentially affect the price movement of bitcoin in the coming days and weeks.
IMF Directors Warn Of Crypto Risks
The Executive Board of the IMF regards the use of crypto assets as a threat to the global monetary system. He warned of possible consequences for monetary policy, capital flow management measures and fiscal concerns.
The IMF recommends that member states take appropriate measures to address the growing popularity of cryptocurrencies. The board discourages governments from adopting digital coins as legal tender, as seen with El Salvador and the Central African Republic’s recent embrace of bitcoin.
Strong macroeconomic policies and credible institutional and monetary policy frameworks are critical, and the Fund will continue to advise in these areas. The International Monetary Fund (IMF) has warned that the growing use of cryptocurrencies poses a risk to the global monetary system, with the potential to undermine monetary policy, avoid capital flow management, and exacerbate fiscal concerns.
The IMF discourages governments from declaring cryptocurrencies as legal tender, despite the adoption of bitcoin as official currency by some countries such as El Salvador and the Central African Republic. The IMF’s cautious stance on cryptocurrency could lead to increased scrutiny and regulation, which could affect the adoption and value of bitcoin and other cryptocurrencies.
Bitcoin dips as US PCE inflation data signals interest rate hike anticipation
Bitcoin (BTC) fell back to $23,000 on Friday, shortly after the release of the Personal Consumption Expenditure (PCE) Price Index, showing a 5.4% YoY and 0.6% MoM growth in January. The higher-than-expected data means the Federal Reserve’s fight against rising inflation is likely to continue.
BTC started Friday around $24,000 and held above $23,800 until the January PCE data was released at around 13:30 UST. After the release, the price plummeted, falling as low as $23,000 in just 30 minutes. At the time of writing, it costs $23,217.
Bitcoin’s decline was followed by a 3.3% drop in Ethereum (ETH), a 4.6% drop in Cardano (ADA), and a 7.1% drop in Polkadot (DOT). Meanwhile, the NASDAQ and S&P 500 are down 1.81% and 1.25%, respectively.
According to data from Coinglass, over $110 million was liquidated as a result of the crypto market decline in the last four hours, including $44 million in Bitcoin and $22 million in ETH liquidations. The XBTUSD deal had the largest single liquidation on BitMEX at $7.52 million.
The PCE, rather than the consumer price index, is the Fed’s preferred measure of inflation (CPI). The former differentiates itself by tracking how customers’ purchasing patterns evolve over time, and the central bank believes it to be the best predictor of future inflation 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.
Currently, the price of bitcoin is $23,873, with $28.6 billion traded in the last 24 hours. The bitcoin price has decreased by about 2% over the same time frame.
From a technical perspective, bitcoin is expected to find immediate support near the $23,600 level, below which it could expose BTC price towards the $23,375 level.
Bitcoin Price Chart – Source: Tradingview
On the upside, if bitcoin successfully breaks above the $24,100 level, it could potentially reach the $24,500 or $25,200 marks. However, the RSI and MACD indicators are still in the sell zone, so it is important to keep a close eye on the $23,600 to $23,350 range. If the price closes above this range, there could be a potential buying opportunity.
The current price of bitcoin is $23,873 with a 24-hour trading volume of $28.6B. In the last 24 hours, it has registered a decline of about 2%. From a technical perspective, bitcoin is expected to find immediate support around $23,600. If there is a break below this level, it could potentially expose BTC price towards the $23,375 level. Bitcoin price chart source is Tradingview.
bitcoin options
Investors looking to buy into bitcoin may want to consider alternatives with more room for growth in the short term. Cryptonews has released an in-depth analysis of the top 15 cryptocurrencies investors can consider for 2023. Click below to know more.
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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