Bitcoin And Ethereum They have been the two most popular digital assets in the world, with their prices seeing huge jumps since their inception. As more and more people become interested in cryptocurrencies, it is important to understand what factors can propel Bitcoin and Ethereum to new heights.
This article will discuss various factors affecting the prices of these two popular digital currencies including fundamental and technical analysis.
In the last 24 hours, the crypto market cap has increased by 1.45% to $1.71 trillion, while the trading volume has decreased by 7.81% to $79.382 billion.
DeFi market share in 24-hour cryptocurrency trading volume was around 0.01% with a total of $9.84 billion. However, stablecoins represent 99.99% of $79.82 billion and have 41.65% market dominance at the time of writing, with Bitcoin trading at $37,527.19 today.
Factors That Could Drive BTC and ETH to New Highs
In the coming week, crypto investors will be closely watching the US Fed funds rate and US nonfarm payrolls data.
US Fed Funds Rate and the FOMC
February 1 marks a busy week for central banks as the Federal Open Market Committee (FOMC), the Bank of England (BoE) and the European Central Bank (ECB) all gather to announce their respective interest rate decisions.
The CME FedWatch tool predicts a high probability (98%) of the Federal Open Market Committee raising interest rates by 25 basis points and setting the target range for the federal funds rate at 4.75%.
It is difficult to judge whether the central bank will make a softer or less sharp rate hike. Economic performance since December has been below expectations as seen through retail sales and manufacturing data. In addition, the components of inflation have been weaker than normal.
Average hourly earnings saw a significant decrease, while the Consumer Price Index (CPI) for December marked its first negative reading since May 2020. Another 0.25% increase in March.
Is it possible that the FOMC could signal a rate hike of 0.25% this week, yet decide to pause to review cumulative hikes, similar to the Bank of Canada?
The decision on the rate of return for cryptocurrencies will have a significant impact on their price movement in the market.
US nonfarm payrolls data
US nonfarm payrolls data indicate the strength of the economy by tracking total employment outside the agriculture sector. This data is used by traders to make decisions about buying or selling cryptocurrencies and other digital assets. The current choppy session in the crypto market could move into a volatile market if it continues US NFP figures next week.
The US economy added 223,000 jobs in December 2022, the lowest since December 2020, after a decline of 256,000 in November and topping market forecasts of 200,000. Payroll employment is set to increase by a total of 4.5 million in 2022, or an average of 375,000 per month, compared to 562,000 in 2021 and 168,000 in 2019.
The labor market is slowly returning to normal after the shock of the pandemic, and reports suggest that the pace of hiring is slowing, though it is still strong.
According to Fed projections, the labor market will remain tight in 2023, but job creation will stagnate and the unemployment rate will climb to 4.6%.
Amid rising interest rates, sluggish consumer demand and a worldwide economic downturn, several large technology corporations have already announced major layoffs.
bitcoin price
to date, current Bitcoin The price is around $23,223 & its 24h trading volume is around $17 Billion. According to Coinmarketcap, it has a market cap of $447 billion and ranks first. There is a circulating supply of 19,275,881 BTC coins with a maximum supply of 21 million BTC coins.
The technical outlook for bitcoin has not changed significantly recently as BTC/USD continues to trade in a narrow range between $22,900 and $23,400. If bitcoin price breaks below $22,900, the market can be expected to turn bearish, with a potential drop to $22,400.
If there is a sustained decline towards $21,750, we could see an even more bearish trend.
At the moment, the immediate resistance level of bitcoin is set at $23,250. If it manages to surpass that point, the cryptocurrency could reach as high as $23,900 and even $25,150.
ethereum price
Ethereum Currently trading at $1,593 and experienced an increase of 0.50% in the last 24-hours with a total trading volume of $6.8 Billion. It ranks second in Coinmarketcap with a live market capitalization of $195 billion.
During the four-hour period, ETH/USD is trading bullish, holding just below $1,600. Closing candles below this level is highly likely to put pressure on Ethereum. Additionally, Ethereum has formed a symmetrical triangle pattern, indicating indecision among investors.
On the downside, support exists at $1,560, and a break below this level could take ETH towards $1,500. Conversely, a bullish break above the $1,625 level could send ETH towards the $1,680 mark.
bitcoin options
Top 15 Cryptocurrencies for 2023 as rated by Cryptonews Industry Talk. There are a number of alternative projects worth checking out if you are looking for a better potential investment opportunity.
New altcoins and ICO projects are added to the list on a weekly basis.
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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