Bitcoin has regained strength and is now trading above the $23,000 mark, after US Federal Reserve Chairman Jerome Powell announced on Tuesday that inflation was beginning to decline. It trades at $23,200 up 1% while Ethereum rose almost 2% to $1,675.
Also, the news that Digital Currency Group and Genesis have reached a preliminary agreement with their main creditors was seen as another important element that boosted market confidence and helped Bitcoin rise.
The market reacted positively and reached a market value of 1,090 billion dollars, up 1.7% overall over 24 hours.
The current state of the market
The crypto market is in the green and expresses his confidence, because the chairman of the US Fed has signaled that the fight against inflation may well end and that the process of disinflation had begun.
The market reacted quickly to this favorable news, reaching a market value of $1.09 trillion. US Federal Reserve Chairman Jerome Powell reiterated his anti-inflationary stance yesterday.
Consequently, at the end of his speech, the price of BTC soared, reaching $23,300.
Additionally, the news that Digital Currency Group and Genesis have reached a preliminary agreement with a group of their major creditors also played a huge role in boosting market confidence. The agreement includes the sale of the insolvent businesses of Genesis, as well as the refinancing of existing loans.
Will the falling US dollar propel Bitcoin to all-time highs?
The US dollar fell on Wednesday as Federal Reserve Chairman Jerome Powell left no trace of a hawkish backlash against the country’s strong labor market. This increases the chances that interest rates will not rise much more.
Powell acknowledged that if economic conditions remain favorable, interest rates may need to rise more than expected. But he reaffirmed his conviction that a process of disinflation was already underway.
The US dollar strengthened last week after it emerged that employment statistics showed an increase in the unemployment rate and the number of people employed. But, its rise was short-lived and it has since dropped significantlyreaching a level close to that of this summer.
There was heightened optimism among investors around the US Dollar Index at 103.96, which ultimately led to a one-month high for Fed Funds on Tuesday. Interest rates should reach their target level of 5% by June according to the futures markets. This should overall support the growth of Bitcoin, which takes the place of the dollar among tradersas soon as it begins to lose its footing.
Genesis and Digital Currency Group enter into historic agreement
According to Sean O’Neal of Cleary Gottlieb, representing Genesis, a restructuring agreement has been reached with major creditors. The deal will involve the restructuring of debt that Genesis Holdco, one of the companies that previously filed for Chapter 11 protection, owes Digital Currency Group, the company that controls Genesis and its subsidiaries.
These conditions include a second lien term loan agreement with a maturity date of June 2024.
Additionally, this would also include the sale of Genesis Global Trading, among other actions aimed at maximizing the recovery of the estate. As a result, this positive development had a significant upward influence on Bitcoin prices.
The price of bitcoin
The current Bitcoin price is $23,200 and the 24-hour trading volume is $26.9 billion. Bitcoin is up 1% in the last 24 hours and now has a live market capitalization of $447 billion.
On the 4-hour time frame, Bitcoin is now facing immediate resistance at the $23,325 level, closing candles below this level which could result in the price of BTC falling to $22,750 or $22,350.
As technical indicators like the RSI and MACD are in a buy zone, an increase in buying pressure could push bitcoin price towards $23,700 mark. The BTC/USD pair may find support at $22,750, with a break below that level exposing BTC to the $22,400 level.
The price of Ethereum
The current price of Ethereum is $1,675, with a 24-hour trading volume of $8.5 billion. In the past 24 hours, Ethereum gained nearly 2% and its live market cap is $204 billion.
ETH/USD broke through a symmetrical triangle pattern that extended resistance at $1,675, and the close of candles above that level should push the price of ETH to $1,725 or $1,775 quite quickly.
On the downside, a break below the $1,620 level may expose Ethereum to a price of $1,550, but this is still unlikely given the current market.
Alternatives to Bitcoin and Ethereum to follow
Cryptonews Reviewed top 10 cryptocurrencies for 2023. If you are looking for a higher potential investment opportunity, there are many other projects worth considering.
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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