Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies in the world, remained above the $24,000 and $1,600 marks respectively. However, they experienced a slight drop this morning, with bitcoin falling from $25,000 to $24,000.
As volatility continues in the crypto market, investors are keeping a close eye on the minutes of the upcoming Federal Open Market Committee (FOMC) meeting, which are set to be released this week.
The recent downtrend in cryptocurrency prices may be associated with positive economic data coming from the United States. This has strengthened the belief that the Federal Reserve will continue with its plan to tighten monetary policy for a longer period than before.
Furthermore, traders appear cautious about making large investments ahead of the release of Coinbase’s results and Hong Kong’s new VASP licensing scheme, both of which are expected to have a significant impact on the market in the coming weeks.
How Could The Release Of FOMC Meeting Minutes On Wednesday Affect Crypto Prices?
The release of Federal Open Market Committee (FOMC) minutes on Wednesday could have an impact on the price of bitcoin. Since the FOMC sets monetary policy in the United States, any sign of a change in this policy can affect financial markets, including the cryptocurrency market.
In a recent speech at the Economic Club of Washington, Federal Reserve Chairman Jerome Powell discussed the ongoing deflationary process and expressed confidence in the Fed’s ability to reduce inflation to its target rate of 2%.
While Powell’s response to the strong January jobs report did not signal a change in the central bank’s outlook for future rate hikes, he cautioned that continued strong labor data could lead to higher terminal levels of Fed funds.
At its February 2023 meeting, the Federal Reserve raised the target range for the fed funds rate by 25 basis points, now ranging from 4.5% to 4.75%. This is the second meeting in a row where the size of the increase has been reduced, although borrowing costs are now at their highest point since 2007.
Bitcoin traders and investors will be watching the FOMC minutes closely for any signs of inflationary concerns or changes in interest rates, which could potentially affect the price of bitcoin.
Searching for mild dips in the cryptocurrency market
The global cryptocurrency market has been performing well in the recent past but there has been a slight decline in the recent 24-hour period. At the time of writing, the total market cap was $1.11 trillion, representing a 0.68 percent drop in value.
The market inactivity may be related to the fact that the United States is celebrating President’s Day, which may cause traders to be cautious about placing any significant bids. As a result, the value of bitcoin has also seen a slight drop compared to the previous day.
Meanwhile, Ether has also experienced a drop in the last 24 hours for the same reason. As a result, other prominent cryptocurrencies such as Dogecoin (DOGE), Litecoin (LTC), and Ripple (XRP) have also seen minor losses.
Can a Strong US Dollar Weaken Cryptocurrencies? Analysis of the correlation between USD and digital assets
The US dollar is experiencing significant gains and showing strength across the board, driven by positive US economic data that has pushed back long-term predictions of monetary policy tightening by the Federal Reserve.
Markets are speculating that interest rates will be needed to rise because of recent data from the world’s largest economy, which indicated a tight labor market, persistent inflation, strong growth in retail sales and rising monthly producer prices.
Market forecasts indicate that the fed funds rate is expected to reach an all-time high of slightly less than 5.3% by July. The US dollar strengthened on accommodative views from Fed members, who believe that higher interest rates will be necessary to successfully combat inflation.
Therefore, the stronger US dollar has been cited as a key factor contributing to the decline in cryptocurrency prices, including bitcoin (BTC) and ethereum (ETH).
bitcoin price
look at Bitcoin From a technical perspective, it is trading sideways and holding a narrow range between $23,700 and $25,200. The immediate resistance level for the BTC/USD pair currently lies at $25,200, and if the price breaks above this level, it could potentially reach the $26,000 mark.
However, major technical indicators including the RSI and MACD are showing divergence. The RSI is currently above 50 in a buy zone, while the MACD is forming a histogram below 0 in a sell zone. This type of divergence often indicates indecision among investors.
If bitcoin price declines below the current support at $23,750, the next support lies at $22,850, which is determined by the 50% Fibonacci retracement mark.
In the coming week, the focus will be on the FOMC meeting minutes, which are due for release on Wednesday. These minutes could potentially affect the price action of bitcoin.
ethereum price
The ETH/USD pair gained momentum after finding support near the $1,650 level. On the 2-hour time frame, Ethereum has formed a symmetrical triangle pattern, suggesting indecision in the market and keeping ETH price within a volatile range.
If Ethereum If it experiences a bullish rally above the $1,650 level, it could potentially reach the $1,720 mark. Additionally, a bullish breakout above the $1,720 level and a symmetrical triangle pattern could trigger further bullish action. In any case, the price levels of $1,760 and $1,800 are likely to act as resistance levels.
On the downside, there is a support near the $1,650 or $1,625 level for Ethereum. The RSI and MACD are showing divergence, which equates to bitcoin price analysis.
This indicates that investors may be waiting for an important news event, such as the release of FOMC meeting minutes, to determine the next market trend.
bitcoin and ethereum options
In addition to Bitcoin (BTC) and Ethereum (ETH), there are several other altcoins in the cryptocurrency market that are showing significant potential. The Cryptonews Industry Talk team has done an analysis and come up with a list of the top 15 cryptocurrencies to watch in 2023.
This list is regularly updated with new altcoins and ICO projects, so it is recommended 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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