Bitcoin (BTC) and Ethereum (ETH), two of the most popular cryptocurrencies in the world, have been unable to contain their losses and are still trading in the red below the $23,000 and $1,600 marks respectively.
Traders are hesitant to place any strong bids ahead of a crucial week of economic development in the United States. The release of non-farm payrolls statistics this week and remarks by US Federal Reserve Chairman Jerome Powell make this an important moment for the market.
BTC has struggled to rise above the $22,800 level, and if the bears are able to push the price below the current levels, the next support level will be $21,480.
The second largest cryptocurrency, Ethereum, has also seen a lack of trading activity around the $1,500 mark, indicating indecision between buyers and sellers.
risk-off market sentiment
The global cryptocurrency market has been in a downtrend for the past few weeks, with prices falling across the board. The main reason for this decline is the bearish market, which has had a negative impact on the price of bitcoin.
However, the current market conditions may also affect the supply of BTC. As people lose confidence in the market, they may choose to sell their bitcoin holdings, which could lead to an increase in supply and a further drop in price.
There is a ray of hope amidst the current decline in the prices of bitcoin and ether. If investors view the Silvergate suspension as a minor setback rather than a major negative event, then the current bearish trend may not last long.
It is worth noting that bitcoin and ether have a significant market capitalization and are closely correlated. Therefore, any positive outcome for one cryptocurrency can have a favorable effect on another.
The growing interest of large financial institutions in bitcoin and ether is another factor that may be contributing to the rise in their prices.
Over the past few months, several major financial institutions have shown interest in investing in bitcoin or offering bitcoin-related services to their customers. This increased institutional demand for bitcoin and ether could fuel an increase in their values.
Regulatory Crackdown Weakens BTC
The intense government crackdown on cryptocurrencies has led to a drop in the prices of bitcoin and ether. Since cryptocurrencies operate in a legal gray area, governments around the world are still attempting to regulate them. The strong government crackdown on cryptocurrencies is causing a decrease in demand for bitcoin and ether.
This may raise concerns among investors and traders, as well as increased volatility and fear of legal consequences.
Governments and regulatory agencies may introduce policies that prohibit or restrict the use or trading of cryptocurrencies, which may reduce the demand for bitcoin and ether, which may lead to a decrease in their values.
Furthermore, investor sentiment may turn negative when they sell their holdings due to a lack of confidence in the future prospects of cryptocurrencies driven by regulatory actions. This could lead to a drop in cryptocurrency prices.
In short, investors should closely monitor any potential regulatory action on cryptocurrencies as it could significantly affect the values of bitcoin and ether.
Bearish US Dollar – Eyes on Fed’s testimony
The US dollar remained cautious on Tuesday in anticipation of testimony from Federal Reserve Chairman Jerome Powell. The US dollar index, which measures the greenback against six major currencies, fell 0.077% to 104.170 after losing 0.26% overnight.
After rising 2.6% in February, the index decreased 0.6% for the month.
Investors are awaiting February jobs data, which are due for release on Friday, but their primary focus is on Federal Reserve Chairman Jerome Powell’s testimony before Congress on Tuesday and Wednesday.
Fed raised Reduction in interest rates by 25 basis points in the recent two meetings after a significant increase in the previous year. However, strong economic data in February fueled concerns that the central bank could take bigger steps.
Meanwhile, a cautious move by the US Dollar may help the crypto market to regain some of its momentum.
bitcoin price
This time, BitcoinThe live price is $22,465, with a 24-hour trading volume of $15.6 Billion. In the last 24 hours, bitcoin has seen an increase of 0.37%. With a live market cap of $433 billion, Bitcoin is ranked #1 in CoinMarketCap’s ranking.
It has a circulating supply of 19,310,450 BTC coins and a maximum supply of 21,000,000 BTC coins.
According to the technical analysis, the BTC/USD pair is currently in a consolidation phase, trading within a narrow range of $22,000 to $22,500.
A breakout from this range, either to the upside or downside, could lead to significant price movement in the bitcoin market.
If the BTC/USD pair surpasses the $22,500 level, it could trigger a bullish breakout, which could potentially lead bitcoin price towards the $22,800 or $23,250 levels.
Conversely, if the $22,000 or $21,750 support holds, this could lead to a rally.
ethereum price
current price of Ethereum (ETH) at $1,573.86 USD with a 24-hour trading volume of $4.9 Billion. Ethereum has seen an increase of about 1% in the last 24 hours. Ethereum is currently ranked #2 on Coinmarketcap with a live market cap of $192 billion.
Looking at the technical side, the ETH/USD pair is currently trading in a tight range between the $1,550 and $1,580 levels.
If Ethereum price declines below the $1,560 level, it could find support near the $1,500 mark. Nevertheless, it is worth noting that there is enough resistance near the $1,620 or $1,680 levels, which could prevent further losses in the price.
Top 15 Cryptocurrencies to Watch in 2023
You can check out Cryptonews’ Industry Talk team’s carefully curated list of the top 15 altcoins to watch in 2023 below. This list is regularly updated with new ICO projects and altcoins, so be sure to check back often to stay up to date with the latest developments. ,
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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