The world’s top cryptocurrency, bitcoin, has declined sharply, hitting its lowest value in two months. The second most valuable cryptocurrency, Ether, also experienced a similar decline in value.
On March 10, bitcoin briefly fell below $20,000 for the first time in nearly two months, hitting a low of $19,918.
However, the accommodative stance of the Federal Reserve has influenced the crypto market, indicating that the next interest rate hike will be higher than the market consensus, creating uncertainty among traders and investors.
Furthermore, recent government actions have further contributed to the decline in the cryptocurrency market, making it difficult for the sector to gain positive momentum.
Risk-off mood in the crypto market
The global cryptocurrency market is facing a bearish phase, with various cryptocurrencies suffering significant losses. Concerns about upcoming interest rate hikes and regulatory uncertainty have eroded investor confidence, contributing to a global bear market.
Significantly, the recent statements of Federal Reserve Chairman Jerome Powell have increased the uncertainty of the market. Powell’s aggressive stance on a possible interest rate hike has raised fears about the potential impact on the cryptocurrency sector.
Furthermore, recent regulatory actions against major players such as Paxos and Binance and the SEC’s crackdown on centralized staking have added to the negative sentiment in the crypto market.
This has added to the uncertainty surrounding the regulatory environment for cryptocurrencies, which has historically been a contentious issue for the industry.
Bullish US Dollar Contributes to Pressure on the Crypto Market
On the other hand, the strong US Dollar was another factor exerting negative pressure on the cryptocurrency market. as fed Recent Statements from Chair Jerome Powell The US currency strengthened as market sentiment dominated regarding a possible interest rate hike to control inflation. As a result, the dollar has appreciated against major currencies.
Therefore, the bullish trend in U.S. Dollar This has also affected the cryptocurrency market, contributing to recent losses in bitcoin and other cryptocurrencies.
When the US dollar strengthens, investors shift their funds away from riskier investments like cryptocurrencies to safe-haven assets.
Overall market sentiment is cautious, as Powell’s statements have created uncertainty among traders and investors. Given the prospect of further interest rate hikes, many are watching closely for any additional clues about the Federal Reserve’s intentions.
$1B worth of bitcoin removed from US-seized wallet
In March 2023, approximately 50,000 bitcoins worth $1 billion were transferred from accounts seized by law enforcement in the United States. However, most of the transfers were internal, with 9,861 BTC being transmitted to Coinbase and the rest being split between two wallet addresses.
Hence, the unexpected move raised concerns among traders and investors about possible market turbulence in the future. It is worth noting that the effect of BTC transfers on such a large scale is uncertain, as it is unknown whether the recipients will sell or keep the funds.
However, the move could potentially increase selling pressure in the market, driving BTC prices lower. On the other hand, if the money is retained by the beneficiaries, the circulating supply of BTC may decrease, resulting in an increase in value.
bitcoin price
Live Bitcoin The price is $19,969, with a 24-hour trading volume of $36 Billion. Bitcoin is down 8.16% in the last 24 hours. It holds the top ranking on Coinmarketcap with a live market cap of $385 billion.
Bitcoin is trading below $21,000 and facing a key resistance near $22,000 near $20,400. A close above $22,600 could spark an increase towards $23,000.
A failure to hold $21,000 could result in a decline to $19,800 or $18,400.
Top cryptocurrencies to watch in 2023
Check out Cryptonews’ Industry Talk team’s pick of the top 15 altcoins to watch in 2023, regularly updated with new ICO projects and altcoins. Keep up to date with the latest developments by visiting the list frequently.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
Find the best price to buy/sell cryptocurrency