Bitcoin Extends Today his nine-day winning streak and hit a daily high of around $18,224, now quoting as of this early morning, $18,219, with a 3.8% increase over 24 hours. Meanwhile, Ethereum benefited from the rise of Bitcoin and rose nearly 5% to $1,400.
Simply put, the two most popular cryptocurrencies in the world, Bitcoin (BTC) and Ethereum (ETH) continued their upward trend, adding respectively more than 10% and 17% this month to their value.
However, the reason for the continued upward trend in all digital assets is the prediction that inflation will slow and the Federal Reserve will raise interest rates more moderately as it may reach the peak of its aggressive campaign to monetary policy tightening.
Apart from this, several encouraging developments are taking place in the cryptocurrency market such as Dubai issuing regulations and FTX which collects funds from clients.
Moreover, El Salvador, a Central American country, recently approved a bill that would allow the country to sell Bitcoin-backed bonds. This news also plays an important role in strengthening Bitcoin prices.
In contrast, the majority of 13 bitcoin mining stocks fell on Wednesday, with six rising. Because of this, this news was perceived negatively, although it has not yet affected the price of bitcoin.
US inflation figures in the spotlight
Inflation in the United States is expected to have fallen for the sixth consecutive monthat 6.5% in December 2022 (from 7.1% in November), reaching its lowest level since October 2021. After increasing for four consecutive months, and after increasing by 0.1% in November, inflation should therefore stabilize in the coming months.
Core inflation is expected to fall to 5.7% pa, its lowest level in a year, while monthly core inflation is expected to rise at a slightly faster pace of 0.3% from 0, 2% in November.
Even though inflation seems to have peaked at 9.1% in June 2022, it remains more than three times higher than the Fed’s 2% target and suggests a general rise in the price level, particularly in the sector of services.
Risky mood in the crypto market
The global cryptocurrency market followed an upward trajectory and gained popularity throughout the day, which ultimately boosted cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and many other currencies. The global cryptocurrency market capitalization increased by more than 3% to $886.94 billion on the day.
Meanwhile, the total cryptocurrency market volume increased by 21.39% to $42.52 billion in the past 24 hours.
However, the reason for its continued upward trend could be attributed to favorable economic developments such as Dubai enacting legislation at the federal level, FTX recovering client funds, and improving macroeconomic conditions. This is why all digital assets have increased significantly since the beginning of the year.
El Salvador Passes Legislation Approving Bitcoin Bond
According to a January 11 Bloomberg report, El Salvador has implemented a law that would allow this nation to issue Bitcoin-backed bonds. The law was recently passed by the National Congress with 62 votes in favor and 16 votes against. The measure is now ready to be signed by President Nayib Bukele.
It should also be noted that the proceeds from these bonds will be used to support Bukele’s $500 million idea of develop a “Bitcoin City” near the coastal volcano Conchagua. The city will use Bitcoin as its primary currency and mine cryptocurrencies using clean volcanic energy.
This aspect of the project is considered to be another major aspect that has a positive influence on BTC prices.
The US dollar under pressure
The weakening of the value of the US dollar is another factor that helps cryptocurrencies. The US dollar failed to manage its slight rally and fell to a seven-month low before the US inflation data. This should underline that inflation has eased in the world’s largest economy and that the Federal Reserve’s rate hike plan has taken effect.
As we have already said, the dollar has already fallen to record lows against other currencies this year due to expectations that the Fed may be reaching the climax of its aggressive monetary policy tightening campaign. However, it could turn out that she may not have no need to raise rates as high as previously thought : which leaves a dollar breath of fresh air to get up in the next weeks.
The price of bitcoin
Bitcoin is currently trading at $18,200, with a 24-hour trading volume of $16 billion. Bitcoin is on a uptrend and is now facing immediate resistance near the $18,350 level. An upward crossing of this level has the potential to drive BTC towards prices such as $19,850 or even higher towards $19,950.
In contrast, Bitcoin’s immediate support levels remain at $16,800 or $16,400. While the RSI and MACD indicators have reached overbought levels. As a result, we need to keep an eye on the $18,350 price action, as failure to break above this level may lead to lower BTC prices, due to a possible downside correction.
The price of Ethereum
The current price of Ethereum is $1,400, with a 24-hour trading volume of $10 billion. The ETH/USD pair broke through the major resistance level of $1,350 and is now heading towards the next $1,500 resistance zone.
Ethereum’s immediate support is now at $1,350, and closing the candles above this level should result in a uptrend that may extend. If the $1,400 level is breached, the price of ETH may approaching the next $1,500 resistance zone quite quickly.
On the downside, on the downside, the price of ETH may find support around $1,375, and a break below this level may allow further selling up to $1,275. However, today’s uptrend is dominant : it will then be necessary to look for buying opportunities.
Other high-profit cryptos
The global cryptocurrency market is uncertain, but a few new cryptos are making headlines. Let’s explore the possibility of taking advantage of it!
Fight Out (FGHT)
The Fight Out Platform (FGHT) works the same way as a personal sports trainer, except that the FGHT token is the reward given for exercise periods. All activities are recorded and can be used to improve the statistics of his metaverse avatar. The possibility of earn FGHT tokens adds an extra incentive for people to stay healthy and exercise while enjoying the benefits of blockchain technology.
Despite the general lack of liquidity in the cryptocurrency market, Fight Out was successful and attracted investors. Thanks to its token sale, which started last week, it has already been raised over $2.8 million. The current sale price is 60.06 FGHT for $1 (FGHT can be purchased with ETH or USDT), but this will increase as the selloff progresses.
C+Load (CCHG)
C+Charge (CCHG) is a peer-to-peer payment system based on Binance Chain for electric vehicle charging stations (VE). Its aim, which should start in the second quarter of next year, is to increase access to carbon credits by rewarding consumers who charge their electric vehicles at its terminals.
According to forecasters, the project has potential as it will benefit from the expected significant development of the carbon credit market. Coherent Market Insights believes that the market will be worth over $2.4 trillion by 2027up from around $211.5 billion in 2019.
For C+Charge, the possibility of earning carbon credits is an additional incentive to accelerate the already rapid transition to electric vehicles. The voluntary credit market (VCM) is expected to reach $100 billion by 2030, and analysts believe startups like C+Charge will play a big role in that expansion. So far, the presale has so far raised $244,700.
Find the best price to buy/sell cryptocurrency
