Cryptocurrency markets have seen huge swings over the past few weeks, with Bitcoin and Ethereum prices suddenly rising and falling. It has been a turbulent time for investors.
On this Monday morning, Bitcoin (BTC) sees its value drop below $23,000, losing 2.4% as investors waited to hear from Jerome Powell, chairman of the Federal Reserve. Other digital assets, such asEthereumare also down, losing 2.2%.
The main factors influencing the value of Bitcoin and other assets are increased fear surrounding the pandemic and a choppy crypto market.
There US dollar rise also had a considerable impact on the crypto universe, adding to the difficulties of it and causing the Bitcoin boom to stop.
Additionally, heightened concerns about possible monetary tightening and Sri Lanka’s resistance to the use of bitcoin are adding negative factors to the cryptocurrency market.
Looking ahead, traders are extra cautious when it comes to investing due to the upcoming conversation between Federal Reserve Chairman Jerome Powell and the Economic Club of Washington DC on Tuesday. The conversation should provide investors new perspectives on the economic landscape. A particular attention will be granted to comments regarding the trajectory of inflation and the latest employment figures.
Rising US Dollar Curbs Crypto Market Uptrend
The global crypto market failed to maintain the upward trend of the previous week and turned bearish on Monday. BTC prices fell by 2.4%as the labor market report determined that job opportunities in the United States rose more than expected in January.
This created a uncertainty around the Fed’s decision to raise interest rateswhich had a negative effect on digital currencies.
Many cryptocurrencies saw declines over the weekend, following the decline in US stocks prompted by Friday’s surprise increase in job growth figures. Thus, concerns about planned interest rate hikes increased, which ultimately put downward pressure on the crypto market.
Investors are waiting and always observe, for they anticipate the Fed Chairman’s remarks this week. The head of the US Fed said more aggressive policy action is expected in the future in the fight against inflation.
Last week, the Fed raised interest rates as expected and indicated it would do so again soon. Looking ahead, markets will try to take hints about the economic situation during President Jerome Powell’s speech at the Economic Club in Washington, DC on Tuesday.
Moreover, they will remain attentive to the remarks made on the trajectory of inflation and on the most recent social data. Finally, Dollar Rise Challenges Consideration of BTC as a Safe Haven and pushes it down, with many traders investing in the dollar for 48 hours.
What you need to know about Bitcoin in Sri Lanka
Nandalal Weerasinghe, governor of the Central Bank of Sri Lanka, believes that the adoption of decentralized cryptocurrencies will worsen the economic situation of the country. American millionaire Tim Draper recently visited Sri Lanka and offered to use Bitcoin as legal tender to fight the corruption that has caused the island nation’s hyperinflation.
While on a TV show in Sri Lanka, Draper met with President Ranil Wickremesinghe and Weerasinghe to suggest Bitcoin as a practical solution to solve the country’s financial problems.
Nandalal Weerasinghe, the Governor of the Central Bank of Sri Lanka, a major authority figure, believes, on the contrary, that it would worsen the economic situation of the nation. This refusal could have a slight impact on Bitcoin prices.
The price of bitcoin
As of today, the value of Bitcoin is $22,860. In the last 24 hours, its trading volume was $21.8 billion and it decreased by 2.4%. It currently ranks first in terms of market capitalization with a value of $441 billion.
In recent times, Bitcoin has experienced a downward trend and is currently hovering around the $22,700 support level. If it crosses below this level, further loss of value is expected. It could then eventually settle at $22,400which is highlighted by a rising trend line and can be seen as a potential support point.
Technical analysis using tools such as the RSI and MACD offer signs of a possible increase in selling pressure which could subsequently drop the value of BTC to $22,350 as the next low point.
According to the 50-day exponential moving average, the BTC/USD pair might face resistance near the $23,250 level and with a strong trend. If it breaks above the $23,250 mark, it could potentially reach the $23,500 level. This suggests that an increase in value is likely in the coming week.
The value of Ethereum
Currently, Ethereum is trading at $1,630 and has seen a 2.2% drop in the past 24 hours. The 24-hour trading volume is $7.5 billion and the market capitalization in ETH is $199 billion.
The ETH/USD pair has not seen a significant change in its rate over the past few days and is trading in the range of $1,610-$1,650. If this level is breached, the price of ETH could surge to $1,720.
The Relative Strength Index (RSI) and the Moving Average Convergence/Divergence (MACD) indicators have recently been providing mixed signals, which may mean that the trend is about to change and also that the market is undecided.
The 50-day exponential moving average points to a possible uptrend. Values above $1,620 suggest that it could be an upcoming ETH rise.
Alternatives to Bitcoin and Ethereum to follow
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Disclaimer: This linked article presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.
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