BitcoinThe world’s largest cryptocurrency, has experienced a sharp reversal in market momentum over the past 24-hours, falling from a recent high of $25,100 to below $24,000. Ethereum Bitcoin has also followed suit and experienced a gradual decline during the same period.
However, the decline in the cryptocurrency market can be mainly attributed to the release of the upcoming US preliminary GDP data and PCE figures, which are expected to increase volatility in the market.
Additionally, the upcoming release of the minutes of the Federal Reserve’s February meeting is another factor making investors hesitant and contributing to the recent losses in bitcoin. However, the central bank is expected to take an aggressive stance within minutes, which could limit the crypto’s gains.
Notably, the higher-than-expected US PMI released earlier has given the Fed more economic headroom to raise interest rates.
Risk-Off Wave Hits Crypto Market: Focus On Key US Data
Despite recent positive regulatory developments for the cryptocurrency market, it has failed to maintain its upward momentum and turned negative. This is likely due to cautious sentiment in anticipation of the release of the minutes of the Federal Reserve’s February meeting, which will provide further insight into US interest rates and monetary policy. Additionally, the upcoming release of the Personal Consumption Expenditure Index is expected to increase market volatility.
It is important to note that the minutes of the Federal Reserve’s February meeting, to be released later today, are widely expected to reiterate the central bank’s dovish stance. The prospect of rising interest rates may limit liquidity, which is unfavorable for cryptocurrencies as higher yields may prompt investors to withdraw their funds from risky investments.
Investors will be paying close attention to the Personal Consumption Expenditure Price Index released on Thursday as it showed that inflation remained high in January. This could provide further justification for the Fed to continue raising interest rates, which could have an impact on various financial markets, including cryptocurrencies.
On Tuesday, better-than-expected US Purchasing Managers’ Index (PMI) February data were released, showing further signs of economic resilience. This has raised expectations that the Federal Reserve will raise interest rates in the near future, as the central bank has expressed a willingness to do so. Strong economic data gives the Fed more room to implement its hawkish stance.
NYDFS Extends Its Virtual Currency Monitoring Capabilities
The New York State Department of Financial Services (NYDFS) has announced an increase in its ability to detect illegal activity related to virtual currency within the firms it regulates. These upgrades are part of the agency’s efforts to remain competitive in the market and take a proactive approach to virtual currencies.
As a result, these efforts are regarded as a positive indicator for the cryptocurrency market, which is likely to aid in its expansion. The New York Department of Financial Services (NYDFS) released a brief statement on February 21 regarding its new capabilities to identify illegal activity involving virtual currencies. However, the statement did not provide any details about the “new insider trading and market manipulation risk monitoring tool”.
Nonetheless, the statement promised that the new enhancements would enable the department to detect potential insider trading, market manipulation, and front-running activity associated with department-regulated entities and applicants for listed virtual currency wallet addresses at risk or potential risk. will provide additional capacity for
bitcoin price
The current real price of bitcoin is $24,207, with a 24-hour trading volume of $28.9 billion. in the last 24 hours, Bitcoin The price has seen an increase of 0.47%. CoinMarketCap reports that bitcoin holds the top position in the market with a live market capitalization of $467 billion, a circulating supply of 19,299,243 BTC coins, and a maximum supply of 21,000,000 BTC coins.
On the 2-hour time frame, bitcoin is displaying an ascending triangle pattern, with an ascending trend line acting as support near the $24,000 mark. If bitcoin price breaks below this level, the next support is expected near the $23,400 level. The RSI and MACD indicators are currently in the sell zone, which is creating additional selling pressure on Bitcoin.
In the near future, the first resistance point for bitcoin can be found at $24,500. If the buying pressure increases, it could result in a breakout in price above this level, paving the way for bitcoin to test the subsequent resistance at $25,200.
ethereum price
current live price of Ethereum stands at $1,665 with a 24-hour trading volume of $9 billion. Ethereum has gained more than 1.25% in the last 24 hours. According to Coinmarketcap, Ethereum is ranked #2 with a live market capitalization of $203 billion.
On the technical front, the ETH/USD pair is currently facing an immediate resistance at $1,780, which is reinforced by the 50-day EMA. A close below this level could trigger a selloff in ETH.
If the ETH/USD pair’s current decline continues, and there is a bearish breakout below the 38.2% Fibonacci retracement level, the downtrend could potentially extend towards the $1,600 or $1,565 support levels.
Bitcoin and Ethereum Alternatives to Watch in the Cryptocurrency Market
Apart from Bitcoin (BTC) and Ethereum (ETH), there are several other altcoins in the cryptocurrency market that investors should keep an eye on. To help them stay up to date, the Cryptonews Industry Talk team has done an analysis and put together a list of the top 15 cryptocurrencies to watch in 2023.
The list is updated regularly with new altcoins and ICO projects, so it is advised to check back frequently for the latest additions.
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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