Bitcoin has continued its downtrend and is now below $22,000, while the global cryptocurrency market cap is on the verge of falling below the $1 trillion mark. Most cryptocurrencies including bitcoin and EthereumThere has been a decline in the last few days.
The decline was triggered by the US-based Kraken crypto exchange’s decision to shut down its staking service and pay a $30 million fine to the SEC for failing to register the business. As a result, there has been a negative impact on the cryptocurrency market, which has resulted in losses for BTC.
On a positive note, the optimistic commentary made by several notable figures regarding the bitcoin price is seen as a key factor in preventing further losses for BTC. For example, Dan Morehead, CEO of Pantera Capital, believes that despite some market pessimism, bitcoin has begun its next bull cycle.
Meanwhile, Blockstream co-founder Adam Back is optimistic that the value of bitcoin (BTC) will rise to $10 million in the next nine years, taking its market cap to over $200 trillion. Additionally, bitcoin mining firms such as Core Scientific, Riot and CleanSpark experienced an increase in their cryptocurrency production in January. This is seen as another important factor that could help limit further losses for BTC price.
In this post, we will examine the possibility of Bitcoin and Ethereum bouncing back along the 38.2% Fibonacci retracement and the potential effects on their prices.
risk-off crypto market
The global cryptocurrency market has experienced a massive selloff, and is likely to fall below the $1 trillion mark. Bitcoin (BTC) was unable to overcome the $22,000 barrier over the weekend and is currently trading well below that level. Other popular cryptocurrencies such as Dogecoin (DOGE), Ripple (XRP), Solana (SOL) and Litecoin (LTC) have also suffered losses.
However, the fall was caused by the decision of the US-based Kraken cryptocurrency exchange to stop its staking service and pay a $30 million fine to the SEC for failing to register the business.
According to a recent report, the SEC and Kraken cryptocurrency exchange have reached an agreement, which clarified that staking as a technical service will continue in the US, but to prevent misuse of the funds, tokens entering staking pools will be restricted. With more transparency about This development resulted in a jump in the price of Liquid staking tokens.
Thus, two macroeconomic factors that have been causing price volatility in the cryptocurrency market are regulatory uncertainty and higher-than-expected December consumer prices.
Blockstream co-founder Adam Back predicts bitcoin’s market capitalization will reach $200 trillion
Blockstream co-founder Adam Back believes that bitcoin (BTC) could reach a market capitalization of over $200 trillion and increase in value by $10 trillion over the next nine years.
Adam said in a Twitter thread on February 12 that this price could be achieved if BTC continues to grow at a rate of 2X over the next nine years. However, this news has not had much impact on BTC prices.
Pantera Capital CEO’s Insight on Bitcoin’s Bullish Momentum
Dan Morehead, CEO of Pantera Capital, recently said that Bitcoin has entered its next bull cycle. According to Morehead, investors should not fear the fall of the cryptocurrency market after FTX, as bitcoin is now in its seventh bull cycle.
In the company’s blockchain letter, he predicted that 2023 would be the year to regain confidence in the crypto sector, admitting that it had bottomed out during this cycle.
It is worth noting that news of Bitcoin entering its next bull cycle, as stated by Pantera Capital CEO Dan Morehead, could have a significant impact on BTC price and help limit further losses. Could
Strong US Dollar: Effects and Effects
The strength of the US dollar is another factor weighing on cryptocurrencies. The broad US dollar index rebounded on Monday and hit a five-week high, driven by expectations of more Federal Reserve policy tightening in anticipation of key consumer price data to be released the following day.
The broader US dollar index remained near its five-week high against major rivals.
The US dollar has been strongly supported since the release of stronger-than-expected US jobs data earlier this month, and recent comments from the Federal Reserve show signs of being more dovish to further boost the currency’s strength. There is a tendency.
Bitcoin Hash Rate Shows Significant Growth
The first production report for 2022 from publicly traded bitcoin mining firms indicates a continued increase in hash rate and a sharp increase in BTC production over the past month, according to a new Hashrate Index research. This could be due to improving weather conditions and stable rates of electricity.
In January, most bitcoin miners increased their production, with CleanSpark increasing its production by 50% and setting a new monthly record of 697 bitcoins. Riot, the second largest producer, mined 740 bitcoins in January, while Core Scientific remained the top producer of BTC, producing 1,527 coins.
As a result, this development can be seen as a positive factor that could help prevent further downside in BTC price.
bitcoin price
present value of Bitcoin Today’s position is at $21,898, with a trading volume of $19 billion in the last 24 hours. Bitcoin has lost less than 0.50% in the last 24 hours.
According to Coinmarketcap, it is currently ranked #1 with a live market capitalization of $422 billion. The circulating supply of bitcoin is 19,289,343 BTC coins, while the maximum supply is 21,000,000 BTC coins.
On the technical front, bitcoin is currently approaching the 38.6% retracement level at $21,290. If this level is breached, it could open more positions for selling, with a potential drop towards the $20,300 level.
However, if the candle closes above the $21,300 level, there is a possibility of a bullish rally with a chance to reach the $22,375 level. The increase in buying pressure could propel BTC price towards the next resistance at $24,260.
ethereum price
the current Ethereum The price is $1,524 and the 24h trading volume is $6,301,002,828 ETH. The crypto’s loss of 0.50% in the last 24 hours ranks it #2 on Coinmarketcap with a market capitalization of around $186 billion.
On the technical front, Ethereum is trading just above the 38.2% Fib retracement level at $1,500, which is also acting as a double-bottom support. A closing candle above $1,500 has the potential for an upside move towards the $1,560 level.
This resistance level has been driven by an ascending channel that was previously violated on Friday. A break above $1,560 could expose BTC towards the $1,600 or $1,680 levels.
If there can be a break above $1,560, ETH price is likely to remain higher and ETH traders have better profit opportunities. If not, ETH price is predicted to decline and reach the $1,435 level.
bitcoin and ethereum options
We recently identified the top 15 cryptocurrencies for 2023 that are the biggest in terms of market cap. If you’re looking to invest in something more promising, there are many other options to consider.
Cryptocurrencies and ICOs are becoming more prevalent, with a new one being introduced every week.
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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