Bitcoin Price Prediction As US Inflation Data Releases – Where Is BTC Heading Now?
As US inflation data is released, Bitcoin investors and traders anxiously await the impact on the cryptocurrency’s price. Since last Friday, Bitcoin has been on a remarkable run, rebounding nearly 30% from recent lows and setting a new 2023 record above $26,000. The cryptocurrency’s surge comes amid a crisis in the banking sector and widespread bank runs.
In addition to Bitcoin (BTC), Ethereum (ETH) has also seen a rise in value, currently trading above the $1,600 mark. This upward trend in both BTC and ETH’s value has contributed to an overall increase in the value of most cryptocurrencies.
Therefore, the future of cryptocurrencies seems optimistic, especially as the US government has shown willingness to support banks that accept cryptocurrencies.
This move has instilled investor confidence and restored confidence in the financial sector, leading to an increase in demand for cryptocurrency. Consequently, major cryptocurrencies such as Bitcoin and Ethereum have increased their values, contributing to an overall increase in market capitalization.
This article will examine the latest Bitcoin price predictions and trends as investors navigate the impact of inflation on the cryptocurrency market.
Support from US regulators boosts BTC value
Despite the recent shutdowns of crypto-friendly banks, the cryptocurrency market climbed above $1.08 trillion for the first time in weeks. This increase was mainly driven by Bitcoin (BTC), which rose nearly 10% to surpass the $24,000 mark, hitting a two-week high. Ethereum (ETH) also witnessed a boost, rising above $1,600.
The recent rise in BTC’s value was ignited by US regulators’ support for Silicon Valley Bank and Signature Bank, which many investors and traders saw as a positive signal for the overall banking sector. As a result, market sentiment improved and investors rushed into BTC, causing its value to skyrocket.
However, the recent rise in BTC’s value highlights the increasing mainstream adoption of cryptocurrencies. This suggests that the cryptocurrency market may continue to experience rapid growth and volatility as more investors and institutions embrace digital assets.
The EU proposes a new blockchain for personal identification
In another way, the EU has proposed a specialized blockchain containing the region’s relevant personal identity and data information. This blockchain safeguards users’ privacy while complying with MiCA, the EU’s upcoming cryptocurrency regulatory framework.
This move is expected to boost investor confidence in the cryptocurrency sector, and demonstrate that governments and regulatory organizations are willing to support the industry.
US Dollar Falls, Bitcoin Rises Amid Systemic Concerns
The US dollar struggled to gain momentum on Tuesday and hit a multi-week low on concerns of a potential systemic crisis following the collapse of a US technology-focused lender.
The current crisis in the banking sector has sparked speculation that the Federal Reserve may halt its aggressive rate hike cycle.
As a result, market expectations suggest there is a 31% chance of rate cuts expected in June and the rest of the year.
It is important to remember that the Federal Reserve’s interest rate hikes have played a significant role in driving the US dollar’s strength, but expectations of how high interest rates could rise have moderated.
Looking ahead, the key US inflation report will be released later on Tuesday, adding to the Fed’s dilemma over whether to continue with interest rate hikes to counter persistent price pressures or to hold off on further monetary tightening to allow the banking system some relief.
Bitcoin price
On Tuesday, the BTC/USD pair was trading with a bullish bias at the $25,750 level. On the upside, Bitcoin faces immediate resistance at the $26,700 level. Further on the higher side, a breakout of the $26,700 level could open up further room for buying at $27,400.
On the downside, Bitcoin’s immediate support level is at $25,125, and a break below this level could open up further room for selling to the $23,750 level. It may be worth considering a buy trade if the price surpasses the $25,225 level today.
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Check out Industry Talk’s thoughtfully curated list of the top 15 altcoins to watch in 2023, as selected by Cryptonews. The list is constantly updated with new ICO projects and altcoins, so be sure to visit often for the latest updates.
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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