Bitcoin (BTC) and Ethereum (ETH), the two biggest cryptocurrencies in the world, continue to hold above the $24,000 and $1,600 marks, respectively. However, they experienced a slight decline this morning, with Bitcoin falling from $25,000 to $24,000. The crypto market continues to fluctuate, investors are keeping a close eye on the upcoming Federal Open Market Committee (FOMC) meeting minutes, which are set to be released this week. The recent downward trend in cryptocurrency prices may be linked to positive economic data coming out of the United States. This has strengthened the belief that the Federal Reserve will continue with its plan to tighten monetary policy for a longer period than previously expected. In addition, traders seem to be cautious about making large investments before the release of Coinbase’s results and Hong Kong’s new VASP licensing scheme, both of which are expected to have a significant impact on the market in the upcoming weeks.How the Release of FOMC Meeting Minutes on Wednesday Could Impact Crypto Prices? The release of the Federal Open Market Committee (FOMC) minutes on Wednesday could have an impact on the price of Bitcoin. As the FOMC sets the monetary policy in the United States, any hint of a shift in this policy could affect financial markets, including the cryptocurrency market.In a recent speech at the Economic Club of Washington, Federal Reserve Chair Jerome Powell discussed the ongoing disinflation process and expressed confidence in the Fed’s ability to lower inflation to their targeted rate of 2%. While Powell’s response to the strong January jobs report did not indicate a change in the central bank’s approach to future rate increases, he cautioned that sustained strong labor data could lead to a higher terminal level of the Fed funds.At its February 2023 meeting, the Federal Reserve raised the target range for the fed funds rate by 25 basis points, now ranging from 4.5% to 4.75%. This is the second consecutive meeting where the size of the increase has been reduced, although borrowing costs are now at their highest point since 2007.Bitcoin traders and investors will be closely watching the FOMC minutes for any indication of inflationary concerns or changes to interest rates, which could potentially impact the price of Bitcoin.Exploring Mild Dips in the Cryptocurrency Market The global cryptocurrency market has been performing well in recent days but experienced a slight decline in the most recent 24-hour period. At the time of writing, the market’s total value was $1.11 trillion, representing a 0.68 percent drop in value. The market’s inactivity could be related to the fact that the United States is celebrating President’s Day, which may cause traders to be cautious in placing any significant bids. As a result, Bitcoin has also seen a slight drop in value compared to the previous day.Meanwhile, Ether has also experienced a decline in the past 24 hours, likely for the same reason. As a result, other well-known cryptocurrencies such as Dogecoin (DOGE), Litecoin (LTC), and Ripple (XRP) have also seen slight losses.Can a Strong US Dollar Undermine Cryptocurrency? Analyzing the Relationship Between the USD and Digital AssetsThe US dollar has been experiencing significant gains and showing strength across the board, driven by positive US economic data that has pushed back predictions of a prolonged period of monetary policy tightening by the Federal Reserve. The market is anticipating that interest rates will need to rise due to recent statistics coming out of the world’s largest economy, which indicate a tight labor market, persistent inflation, robust growth in retail sales, and increased monthly producer prices.Market forecasts indicate that the Fed funds rate is expected to reach a high of slightly under 5.3% by July. The US dollar has been strengthened by the hawkish views of Fed members, who believe that higher interest rates will be necessary to combat inflation successfully.Therefore, the strong US dollar has been considered an important factor contributing to the decline in cryptocurrency values, including Bitcoin (BTC) and Ethereum (ETH). Bitcoin Price Looking at Bitcoin from a technical standpoint, it has been trading sideways and maintaining a narrow range between $23,700 and $25,200. The immediate resistance level for the BTC/USD pair is currently at $25,200, and if the price breaks out above this level, it could potentially reach the $26,000 mark.However, the leading technical indicators, including RSI and MACD, are showing divergence. RSI is presently above 50 in a buying zone, while MACD is forming histograms below 0 in a sell zone. This type of divergence often indicates indecision among investors.Bitcoin Price Chart – Source: TradingviewIf Bitcoin’s price falls below the current support level of $23,750, the next support level would be at $22,850, which is determined by the 50% Fibonacci retracement mark.In the upcoming week, the focus will be on the FOMC meeting minutes, which are set to be released on Wednesday. These minutes could potentially impact the price action of Bitcoin.Buy BTC NowEthereum Price The ETH/USD pair has seen a rise in bullish momentum after finding support near the $1,650 level. On the 2-hour timeframe, Ethereum has formed a symmetrical triangle pattern, which suggests indecision in the market and has kept the price of ETH within a choppy range.If Ethereum experiences a bullish bounce-off above the $1,650 level, it could potentially reach the $1,720 mark. Additionally, a bullish breakout above the $1,720 level and the symmetrical triangle pattern could drive further bullish price action. In either scenario, the price levels of $1,760 and $1,800 are likely to act as resistance levels.Ethereum Price Chart – Source: TradingviewOn the downside, Ethereum has support levels at approximately $1,650 or $1,625. The RSI and MACD are exhibiting divergence, which is comparable to the analysis of Bitcoin’s price.This indicates that investors may be waiting for a significant news event, such as the release of the FOMC meeting minutes, to determine the next market trends.Buy ETH NowBitcoin and Ethereum AlternativesIn addition to Bitcoin (BTC) and Ethereum (ETH), there are several other altcoins in the cryptocurrency market that show significant potential. The CryptoNews Industry Talk team has conducted an analysis and created a list of the top 15 cryptocurrencies to watch in 2023.This list is updated regularly with new altcoins and ICO projects, so it is recommended to check back frequently for the latest additions.Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.Find The Best Price to Buy/Sell Cryptocurrency Cryptocurrency Price Tracker – Source: Cryptonews
Best Crypto to Buy Now 23 March – ALGO, LHINU, LTC, FGHT, LINK, CCHG, TARO
Wednesday's remarks by Federal Reserve Chair Jerome Powell sent shock waves throughout the cryptocurrency market, resulting in a loss of...
