Bitcoin’s upward momentum is slowing, making investors wary of CoinEdition

• Bitcoin price has slowed, leaving analysts uncertain about the future direction of the flagship cryptocurrency.
• The reversal of the Bitcoin price in mid-February coincided with escalated regulatory behavior by the United States Securities and Exchange Commission (SEC).
• The bulk of Bitcoin’s rally over the past two months happened in January.

After an eventful January, the Bitcoin price has slowed, leaving analysts uncertain about the future direction of the flagship cryptocurrency. Bitcoin price rose by 52.97% before making a 10% retracement in mid-February 2023. The price has since moved sideways as users remain uncertain about what the coming months may bring.

The reversal of the Bitcoin price in mid-February coincided with escalated regulatory behavior by the United States Securities and Exchange Commission (SEC). The SEC accused Kraken, a top cryptocurrency exchange, of marketing unregistered securities. This accusation prompted Kraken to pay a $30 million fine and end its staking-as-a-service program for users.

During the same period, macroeconomic policy adjustment in the US helped the Bitcoin rally stall, eventually developing into a recognizable pullback. Bitcoin price fell from a one-year high of $25,270 to a local low of $22,770 as February ends. Some macroeconomic adjustments include the implementation of a higher-for-longer interest rate policy. Such policies tend to dampen investor enthusiasm for speculative assets like Bitcoin.

A Bloomberg analysis that compared Bitcoin’s recent behavior with historical data indicates the possibility of a further pullback in the Bitcoin price in March. The analyst notes that the bulk of Bitcoin’s rally over the past two months occurred in January. Since the beginning of February, Bitcoin’s gains have withered to around 2%.

Based on history, four of the last five times the Bitcoin price behaved the same way, the price fell further in the following month. The only time the pattern failed was in February 2021, in the heat of a significant bull run.

Noelle Acheson, the author of the newsletter “Crypto Is Macro Now”, confirmed the impact of macroeconomic factors on the Bitcoin price. He noted that the strength of the dollar, amid bets on higher borrowing costs, is playing a role in the ongoing market correction.

Bitcoin is trading at $23,409 at the time of writing. After falling 0.82% for the day.

The post Bitcoin’s Upward Momentum Is Waning, Making Investors Wary appeared first on Coin Edition.

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