Over the past few weeks, Bitcoin and the global cryptocurrency market have been performing impressively. Bitcoin’s price, in particular, has been trending upwards due to its reputation as a safe haven asset. However, Bitcoin’s value dipped slightly along with Ethereum’s when the US Federal Reserve released a dovish statement regarding interest rates. The central bank raised rates as predicted but suggested a possible halt in its rate rise cycle in the wake of a financial collapse. Nonetheless, the Fed reaffirmed its commitment to lowering inflation, and this generated some uncertainty and volatility in the market, causing Bitcoin’s price to drop momentarily.
The decline in Bitcoin’s value was attributed to the perception that Bitcoin is used as a hedge against inflation. Therefore, when interest rates go up, people may not want to invest in Bitcoin as much, reducing its appeal. Higher interest rates can also make investing in the US dollar more attractive, prompting people to sell Bitcoin and other cryptocurrencies. As such, the Federal Reserve’s decision was seen as a negative sign for Bitcoin and other cryptocurrencies.
Despite the dip in Bitcoin’s price, sources indicate that more large investors are buying Bitcoin and wrapping Bitcoin on other networks than usual. Over 13,000 large transactions have been done by Bitcoin whales, and over 100 transactions have been performed by Wrapped Bitcoin whales. This indicates that investors believe in Bitcoin’s future, and it might have a positive impact on Bitcoin’s price.
Bitcoin’s current market value is $27,695.00, with a trading volume of $32.3 billion within the last 24 hours. Bitcoin’s value has declined by nearly 2% in the past 24 hours. Ethereum’s current price is $1,753, and its 24-hour trading volume is $12.6 billion. Ethereum has decreased by nearly 2.50% in the past 24 hours. Ethereum holds the #2 position on CoinMarketCap with $214 billion in market capitalization.
Looking ahead, the BTC/USD pair is currently consolidating near the $28,400 level, having breached the resistance level of $29,250. Due to the continuous bullish trend, there is a likelihood of further increase in Bitcoin’s value to touch $29,250 or even $30,700. On the other hand, Ethereum’s ETH/USD pair is currently experiencing a minor correction, hovering around the support zone of $1,700. If it manages to surpass the $1,800 level, it is expected to face resistance at the $1,900 mark.
Cryptonews’ Industry Talk team has curated a list of the top 15 altcoins to watch in 2023, which is regularly updated with new ICO projects and altcoins. However, readers should note that the Industry Talk section features insights from crypto industry players and is not part of the editorial content of Cryptonews.com.
In conclusion, while the recent dip in Bitcoin’s value may be attributed to the US Federal Reserve’s decision, its safe haven status still boosts the cryptocurrency market. The whale activity indicates that large investors believe in Bitcoin’s future, which is a positive sign for the cryptocurrency’s long-term prospects. As always, investors should exercise caution and do their research before investing in cryptocurrencies.
