Bitcoin and Ethereum Price Predictions: BTC falls to $23,000
Bitcoin has failed to break its losing streak and is poised to end the week on a bearish note as investors steer clear of riskier investments amid rising macroeconomic uncertainty compounded by higher-than-expected inflation numbers.
The significant losses come in the wake of personal consumption expenditure (PCE) data, which revealed a more significant than expected price increase from last month.
Additionally, approximately $1.8 billion worth of Bitcoin options contracts are set to expire today, which could trigger volatility in the short-term price movement of BTC.
As of now, the price of Bitcoin is $23,070.20, with a trading volume of $25,828,731,350 in the last 24 hours. Bitcoin has experienced a decrease of 3.57% in the last 24 hours.
The current price of Ethereum is $1,598.62, with a trading volume of $8,619,530,362 in the last 24 hours. Ethereum has fallen by 2.85% in the last 24 hours.
The crypto market is bearish as inflation concerns rise
The global cryptocurrency market is currently showing a downward trend and is expected to end the week on a negative note as investors avoid taking risks due to growing macroeconomic uncertainty, which has been exacerbated by higher than expected inflation numbers.
According to the PCE price index from the US Bureau of Economic Analysis, the annual inflation rate in the country rose to 5.4% in January from 5.3% in December.
As a result, the core rate of PCE inflation increased, reaching 4.7% for the first time in four months.
These statistics support the view that the Fed may have to maintain higher interest rates for a longer period to counter inflationary pressures.
Both core and total PCE inflation increased by 0.6% month over month. The markets have factored in a 75% probability that interest rates will rise above 5.25% by the end of the Fed’s June meeting.
Bitcoin Options Contracts Worth $1.8 Billion Expires: What Could The Impact Be On Bitcoin’s Price?
Over $1.8 billion worth of Bitcoin options contracts expired yesterday. However, the expiration of a significant number of Bitcoin options has a detrimental effect on the short-term price movement of BTC.
This is because the Bitcoin market can become more volatile as traders rush to execute their transactions if they have established a position that requires them to buy or sell Bitcoin before it expires. This can result in a short change in the price, either up or down.
It is important to note that the impact on the overall market can vary depending on several factors, such as the number of contracts, the positions taken by traders and the general sentiment in the market. Expiration of options is a frequent event in the financial markets.
Increase in Bitcoin Mining Difficulties Reported by BTC.com
BTC.com has reported that Bitcoin’s mining difficulty has increased by 9.95% after the latest adjustment, according to a Friday update. However, the increase in BTC mining difficulty suggests that it is becoming more challenging to mine new Bitcoins, which can have both positive and negative effects on the Bitcoin price.
On the other hand, the increase in mining difficulty may signal an increase in demand for Bitcoin. As more people attempt to mine Bitcoin, the network adjusts the mining difficulty to maintain a steady block rate.
This can create a sense of scarcity and increase demand for Bitcoin, leading to an increase in prices.
Regulatory crackdown on Binance: SEC and NYDFS oppose Binance.US’ proposed acquisition of Voyager Digital Assets
The US Securities and Exchange Commission (SEC) and New York’s financial regulator have opposed Binance.US’ plan to buy the assets of bankrupt Voyager Digital for $1 billion, citing potential violations of several laws.
This is seen as another negative factor affecting the cryptocurrency industry, as the SEC’s regulatory crackdown could have a significant impact on the cryptocurrency market.
Essentially, the SEC is responsible for overseeing the securities markets in the United States and has been closely scrutinizing the cryptocurrency industry in recent years.
Bitcoin price
The current Bitcoin price is $23,150, after falling from the $23,400 mark. From a technical perspective, Bitcoin is expected to find immediate support around the $22,700 level, and if it breaks below this level, it could potentially expose the BTC price to the $22,400 level.
On the positive side, a breakout above the $23,400 level could push the BTC price towards $24,100 or $24,600.
However, the RSI and MACD indicators are still in the sell zone, so it is important to closely monitor the $23,000 to $23,400 area. Closing above this area could present potential buying opportunities.
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Ethereum price
The current live price of Ethereum is $1,600, with a 24-hour trading volume of $8.3 billion. Over the past 24 hours, Ethereum has plunged by almost 3%. According to CoinMarketCap, Ethereum is ranked number 2, with a market capitalization of $196 billion.
The ETH/USD pair is currently facing a significant resistance level at $1,620, reinforced by the 50-day EMA, on the technical front. If the pair closes below this level, it could trigger a selling trend in ETH.
On the downside, Ethereum’s immediate support is at the $1,570 level. A break below this level could expose the Ethereum price to the next support level at $1,515.
On the other hand, a break above the $1,625 resistance level could push the Ethereum price towards the next resistance level of $1,674. Above this, the next resistance level prevails at the $1740 level.
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Top 15 Cryptocurrencies to Watch in 2023
Investors in the cryptocurrency market have many options beyond Bitcoin (BTC) and Ethereum (ETH). The Cryptonews Industry Talk team has compiled a list of the top 15 altcoins to watch in 2023.
The list is regularly updated with new ICO projects and altcoins, so be sure to check back often for the latest additions.
Disclaimer: The Industry Talk section contains insights from crypto industry players and is not part of the editorial content of Cryptonews.com.
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