This morning, bitcoin broke through the $23,000 mark for the fifth time in the last twenty-four hours. This key level has become the focal point of the battle between bears and bulls. As the Federal Reserve’s forecasts continue to influence the cryptocurrency market, bitcoin is up more than 1% on the day. Similarly, Ethereum gained 0.4%, while Binance Coin gained 5.5% and Ripple gained 3.9%.
Bitcoin, which broke above $23,000 for the first time in almost five months over the weekend, has yet to break above that level permanently despite three attempts in the past 24 hours. The scene of a major battle between bears and bulls, bitcoin was up 1.65% at $23,090 this morning.
How Did the Week End in Bitcoin?
Bitcoin rose as high as $23,025 at 17:55 yesterday, but then fell to $22,712 on selling. It then rose above $23,100 at 9:40, before falling back to $22,721 on selling. Overnight, the price rose above $23,000 twice more, but these rallies failed.
This morning, bitcoin reached $23,130 before giving back some of its gains. Today, all eyes will be on whether the world’s largest cryptocurrency can maintain its position above $23,000.
According to analysts, the Fed’s forecasts affect the value of cryptocurrencies as much as regular markets. Despite expectations that the Fed will raise interest rates by 25 basis points on 1 February, uncertainty remains over when the rate hikes will end. The pricing of cryptocurrencies and US equity markets reflect this uncertainty.
Have Falling Inflation Figures Helped?
A report that annual inflation in the United States fell to a 14-month low of 6.5% in December boosted cryptocurrency prices on the 12th. The statistic ruled out the possibility of a 50 basis point interest rate hike by the Federal Reserve soon.
The Dollar Index, which measures the greenback’s performance against its major rivals, fell from 103.2 on the 12th to 102.9 today. The dollar’s relative weakness has boosted demand for cryptocurrencies.
A Very Strong Recession Signal Draws The Attention
In addition, the spread between the 3-month Treasury rate and the 10-year Treasury rate, the Fed’s recession indicator, reached 140 basis points last week, the highest level since 1981, which was seen as a sign that the Fed would not raise rates further.
Therefore, as Fed officials begin to enforce the publication ban, the cryptocurrency market is expected to struggle with its own technical levels until the decision and its contents are explained and analyzed. According to analysts, a sustained break of $23,300 could leave $25,500 on the table.
Positive Market Headwinds Are Also At Play
Not only has bitcoin rallied in recent days, but so has the broader market. In the last twenty-four hours, Ethereum has risen 0.4% to $1,640 on the 8,000 TSI. In the same minutes, Binance Coin was up 5.5% at $321, Ripple was up 3.9% at $0.42 and Cardano (ADA) was up 1.5% at $0.38.
Bitcoin to Increase by 37% by 2023
Bitcoin is up 9% from last week to this morning but will return 37% to investors in dollar terms by 2023. Similarly, Ethereum is up 4.3% over the past week and will return 34% in 2023.
It is important to note that the information provided is not intended as investment advice, and individuals should conduct their own research and seek the advice of a qualified financial professional before making any investment decisions.
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