Bitcoinwith the world’s largest cryptocurrency Ethereum, lost some value and declined below the $28k and $1,800 levels, respectively. However, the reason may be related to the dovish statement issued by the US Federal Reserve regarding interest rates.
Fed raised rates as predicted, but suggested a possible pause in its rate hike cycle in the wake of the financial collapse. But, at the same time, the central bank reaffirmed its commitment to tame inflation, expecting at least one more hike this year and said it has no intention of slashing interest rates this year.
This generated some uncertainty and volatility in the market, causing the price of bitcoin to drop momentarily.
It’s worth noting that bitcoin is used as a way to protect your money against inflation, so when interest rates rise, people may not want to invest in bitcoin because it’s bitcoin’s hedge against inflation. Reduces appeal in form.
Also, higher interest rates could make it more attractive to invest in the US dollar, leading people to sell their bitcoin and other cryptocurrencies. Thus, this decision by the Federal Reserve was viewed as a negative sign for bitcoin and other cryptocurrencies.
Bitcoin’s Safe Haven Status Boosts Crypto Market, But Fed Decision Hurts Its Appeal
global cryptocurrency market Has been performing impressively in recent weeks. This is due to the positive opinion of people on bitcoin as they feel that it is a safe option to keep their money for later. Silicon Valley BankTwo other banks, Silvergate Capital and Signature Bank, collapsed as well.
Despite this, bitcoin did not decline in value, but gained significant traction as it led some bitcoin proponents to believe that bitcoin is a viable alternative to established financial institutions for keeping your money safe.
This is called a “safe haven”. This was seen as one of the major reasons behind the upward bitcoin market.
However, the decline in BTC seems to be slowing down just after the US Federal Reserve announced a 25 basis point increase in interest rates. The Federal Reserve insisted that they prioritize inflation despite the recent banking crisis.
Bitcoin has been seen as a safe place to put your money and a way to protect yourself from rising prices. However, when the US Federal Reserve raises interest rates, it can make it less attractive to invest in bitcoin.
This is because higher interest rates can make the US dollar more attractive, causing people to sell their bitcoin and other cryptocurrencies in favor of the dollar.
Whale activity surges as large investors show confidence in bitcoin
On the bright side, sources indicated that more large investors were buying bitcoin, as well as flipping bitcoin on other networks. This has been going on for some time.
To date, there have been over 13,000 large transactions made by Bitcoin Whales and over 100 transactions by Wrapped Bitcoin Whales. This indicates that the whales are becoming more active than usual.
Therefore, both Bitcoin and Wrapped Bitcoin are seeing their highest levels of whale activity in several weeks. This revelation is likely to have a positive effect on the price of bitcoin as it indicates that large investors believe in the future of bitcoin.
bitcoin price
current market value of Bitcoin $27,695.00 with a trading volume of $32.3 Billion within the last 24 hours. In the last 24 hours, the value of bitcoin has declined by almost 2%. It is currently ranked #1 on CoinMarketCap, with a market capitalization of $535 billion.
The BTC/USD pair is currently consolidating near the $28,400 level, which broke the $29,250 resistance. Due to the continued bullish trend, there is a possibility of further growth in bitcoin price to touch $29,250 or $30,700.
Meanwhile, bitcoin remained stable near the $26,600 and $25,200 support levels.
ethereum price
The current price of Ethereum is $1,753, with a 24-hour trading volume of $12.6B. Ethereum is down about 2.50% in the last 24 hours. As of now, Ethereum is ranked #2 on CoinMarketCap with a live market cap of $214 billion.
The ETH/USD pair is currently experiencing a minor correction, albeit with a lower intensity compared to bitcoin. Ethereum is facing some difficulty overcoming the $1,800 resistance and is hovering near the $1,700 support area.
If the pair manages to overcome the $1,800 level, it is expected to face resistance near the $1,900 mark.
The ETH/USD pair is expected to find immediate support near the $1,700 or $1,620 levels on the downside.
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Here’s a look at the top 15 altcoins to watch in 2023, curated by Cryptonews’ Industry Talk team. The list is updated regularly with new ICO projects and altcoins, so be sure to check back often for the latest updates.
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