Bitcoin remains fairly stable this Tuesday morning at $22,930 while Ethereum also manages to maintain stability at the $1,600 mark, showing at $1,630. Market participants are nervous and undecided following Friday’s surprisingly positive employment data and are awaiting the Fed Chairman’s speech later in the day.
Bitcoin was on an uptrend in the first week of February, hitting a new high above $24,000. The currency, however, was unable to sustain the $24,000 level and the price fell below the $23,000 mark. Market experts believe that February will be less fruitful than January.
They also warned that the current trend in cryptos and stocks could reverse this month due to uncertainty surrounding the possible impact of upcoming U.S. macroeconomic data. The reason for this negative trend could be attributed to recent interest rate hikes by the Federal Reserve.
What Could Powell’s Speech Mean for Crypto Prices?
US markets were relatively calm after last weekend as interest rates remained unchanged and inflation data remained weak. The next two times the Federal Reserve raises interest rates will depend on how the economy performs over the period ahead. People expect deteriorating economic conditions, which could prompt policy easing. The dollar and US Treasury yields have had a period of appreciation, but that should now change. This undermines the effectiveness of Fed hikes as it attempts to keep inflation low.
The appearance of Chairman of the Fed at the Economic Club of Washington this Tuesday, February 7 is a highlight of the week. In the event that the Fed fails to significantly push back the market reaction, it could imply that the Fed itself is relaxed with what is happening. This risks pushing it further in the direction of higher interest rates. Of note, several other Federal Reserve officials are scheduled to speak during the week.
Introducing the most powerful crypto-miner of all time
Riot just announced that it produced 740 Bitcoins in January, a new annual record. This amount is proof that the company has succeeded in its goal of generating more Bitcoin and setting new records. Analysts say that it is a key factor in stabilizing the Bitcoin price.
Riot faced significant challenges to its business following the disastrous collapse of its competitors and the ensuing crypto winter. Bitcoin’s value declined by 64% in 2022, which affected mining difficulty and undermined its profitability.
As the price of Bitcoin increases, some companies are increasing their mining production. This is because they see an opportunity to make an even bigger profit using the new resources provided. Riot was thus able to increase its Bitcoin mining production by 62% from January 2022 to today. They generated 740 BTC in January 2023, a significant increase from the 458 BTC generated in January 2022.
Why is the US dollar losing its strength?
The recent declines in the US Dollar have been another crucial element that could limit further BTC losses. The U.S. dollar fell from its early-week gain on Tuesday, but it remained close to a monthly high as traders raised their expectations of the US Federal Reserve’s interest rate levels needed to limit inflation.
Markets are just recovering from the surprise of Friday’s U.S. jobs data, which showed nonfarm payrolls rose by 517,000 in January, showing a still-healthy labor market.
However, this report boosted the US Dollar, but it has already lost some of those gains in Asian markets on Tuesday after catching traders off guard, who were betting on the end of the Fed rate hike cycle.
The price of bitcoin
Over the past 24 hours, Bitcoin has experienced a increase of more than 0.20% of its value and the daily trading volume is 24 billion dollars. Her live market cap is $442 billion based on data from CoinMarketCap.
Bitcoin is gaining immediate technical support near the $22,700 level. Closing candles above this level have the potential to drive Bitcoin price up towards the next resistance level of $23,200.
Further up, further bullish momentum could push BTC price towards the $23,600 level.
Technical analysis indices such as the RSI and MACD have showed signs of a possible increase in purchaseswhich could push the value of BTC to $23,550.
The BTC/USD pair could find support at $22,750, and a break below this level could expose BTC to a price of $22,400.
The price of Ethereum
Ethereum price today is $1,630 with a 24-hour trading volume of $6.7 billion. Ethereum is stable over the last 24 hours. CoinMarketCap’s current ranking gives it a live market capitalization of $200 billion.
The ETH/USD pair is now trading in a tight trading range of $1620-$1660. On the rise, a break above $1,660 could herald ETH price towards the $1,680 and $1,720 levels.
On the downside, breaking below the $1,620 level can quickly expose BTC to $1,550 levels.
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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