Bitcoin Price Explodes again above $24,000

Audy Castañeda
-
0
<strong>Bitcoin Price Explodes again above $24,000</strong>

The Bitcoin price has skyrocketed again in the last few hours. The price surprisingly rose again and passed the $24,000 mark.

In the past few days, the course of Bitcoin has taken a slight setback. The price dropped from $23,000 to $21,500 a few days ago. These losses came after a period where Bitcoin tried but failed to scale above the $24,000 level.

However, on days 1-2, a bullish trend reversal was seen again. After breaking above $22,000, it has continued to rise for the past few hours. A massive surge pushed the price of Bitcoin above $23,000 and then even back above the $24,000 mark.

What Triggered the Rebound?

With the fall of the last few days, our fears that the Bitcoin price could see a correction after the bullish January were confirmed. However, with the rallies of the last 1-2 days, the price has now reached a high in 2023.

Actually, the increase seems quite strange. Because the US dollar index went up again recently, which would actually mean a falling rate. We are also seeing an increase in SEC investigations into various crypto companies. The macro data is more in favor of a bear market.

As such, many analysts anticipate that it could be a “catch”. Whales could bet on a drop in price and thus earn the money that bullish investors are now pumping into the market.

It is worth remembering that last month Octavio Pacheco, a cryptocurrency operator, pointed out the following:

“When the economic indicators favored the stabilization of prices, short positions were closed at key levels. While volume was lower, volatility grew, causing massive outflows aggravated by bankruptcies and crashes. But the outlook is propitious again.”

For Pacheco, the biggest risk from bitcoin’s recent rise is that the world’s largest economy slips into recession while the Fed remains tight to cool the economy. “This scenario is possible and constitutes the main pressure factor for risk,” he added.

Will Bitcoin Go Up to $30,000, or Down to $20,000?

The increase continues towards $25,000. Actually, it could be a serious bullfight. In this case, it is even possible that the price of Bitcoin could rise to the $30,000 mark in the first quarter of 2023. However, many investors are still very doubtful due to the macro data.

If there is a bull trap, the price could quickly drop toward the $20,000 mark. Expect to see one more major correction, before the market finally turns sustained bullish.

“Bitcoin looks to build on its rally and finds support at the $20,000 level, 2017 high. It was vital to get past it, but will it hold? If it succeeds, trading the long bias to $25,250 is possible. The $29,000 level would be another strong resistance,” explains a note from financial trader ATFX, published last month.

By Audy Castaneda

European Central Bank Launches Controversial Tweet on Valentine’s Day

Audy Castañeda
-
0
<strong>European Central Bank Launches Controversial Tweet on Valentine’s Day</strong>

The European Central Bank (ECB) has once again left a bad taste in many people’s mouths with a publication for Valentine’s Day, a harmless message has arrived at an inappropriate time. Many upset readers, some of them Bitcoiners, made the publication the subject of prominence and criticized the apparent cynicism of the message.

The European Central Bank (ECB) has once again left a bad taste in many people’s mouths. This time it’s a publication made for Valentine’s Day. “Roses are red, violets are blue. We will stay the course and return inflation to two.”

With the above-quoted words, the monetary institution strayed a bit from the formal context and led to a series of reactions and diatribes on Twitter. There is no doubt that if anything can be recognized about the ECB it is its ability to say the same thing in different ways, in different settings, and in all contexts, even on Valentine’s Day, while still generating strong reactions among most of its audience.

The message refers to a continuous restriction of economic growth until the inflation rate drops to 2%.

A “Harmless” Joke in a Sensitive Context

An apparently innocuous message has arrived at an inappropriate moment: in full swing of the Euribor, which already exceeds 3.5% per day, not to mention the persistent rise in prices, which seems to reflect the relative inefficiency of monetary policy in most sectors of the European economy. The ECB’s monetary policy has led to reduced investment opportunities in the economy, thus hitting growth prospects.

The agency’s decision to increase the price of money to try to contain the rise in prices, as well as to try to return to the objective goal of 2% inflation, has put many households in trouble. Unable to foresee an energy crisis like the one that has been unleashed by the war in Ukraine, they took out mortgages in recent years at variable rates, trusting that rates would remain at record lows.

Criticism Rains Down on the Monetary System and CBDCs

The publication generated discontent among many readers, some of them Bitcoiners, who reacted to the apparent cynicism of the message: “Is this all a joke to you? Do you care at all about the families and family businesses affected by your irresponsible policies?”

 There has also been no shortage of those who have joined in on the joke, predicting that the rise in rates will strangle credit to the economy, triggering a recession that will force central banks, ultimately, to retrace the path.

Others returned the joke by criticizing the CBDC project, for which the ECB has high hopes. “Roses are Red, Violets are Blue. Central Bank Digital Currencies are a scam, just reminding you.”

By Audy Castaneda

XRP Bears to Target below $0.3650 on SEC Activity and Fed Fear

Audy Castañeda
-
0
<strong>XRP Bears to Target below $0.3650 on SEC Activity and Fed Fear</strong>

On Tuesday, XRP rose 3.13% to end the day at $0.38228. The scrutiny of US lawmakers on Gary Gensler and the SEC produced a surge of relief. However, technical indicators remain bearish, with XRP below the 200 day EMA indicating a return to below $0.35.

On Tuesday, XRP rose 3.13%. Reversing a 1.14% drop on Monday, XRP ended the day at $0.38228. XRP broke below $0.37 for the second time since January 13.

A bearish start to the day saw XRP drop to an early morning low of $0.36491. Moving away from the first major support level (S1) at $0.3624, XRP rallied to a last hour high of $0.38373. XRP broke above the first major resistance level (R1) at $0.3787, to end the day at $0.38228.

US Lawmakers Raise Question Marks over Gensler Tactics

It was a quiet session on Tuesday, with no updates on the SEC vs. Ripple case to influence investor sentiment.

On Tuesday, the Senate Banking Committee held a hearing, “Crypto Crash: Why Financial System Safeguards Are Needed for Digital Assets.” Questions about Gary Gensler and SEC regulation through enforcement. as well as the SEC’s lack of guidance for crypto companies, highlighted the failures of Gensler and the SEC.

Investors focused on Gensler and SEC regulation by enforcement as positive, supporting a bullish session. Gensler’s tactics come at a pivotal time for the SEC, with the SEC vs. Ripple case now in the hands of Presiding Judge Torres.

Crypto markets will wait for a Ripple victory that would force US lawmakers to rein in the SEC chairman. More importantly, the release of documents related to William Hinman’s speech could hand the reins to the CFTC.

XRP Price Action – Technical Indicators

XRP was down 1.04% at $0.37829. A bearish start to the day saw XRP fall, from an opening price of $0.38211, to a low of $0.37829.

XRP needs to avoid a drop through the $0.3770 pivot to target the first major resistance level (R1) at $0.3890. A return to $0.3850 would signal a bullish session. However, the broader crypto market and SEC vs. Ripple talk would need to support a breakout.

In the event of another prolonged rally, XRP would likely test the second major resistance level (R2) at $0.3958, and resistance at $0.40. The third main resistance level (R3) sits at $0.4146.

A bearish cross from the 100 day EMA to the 200 day EMA would support a drop through S1 ($0.3702) to trade $0.3650. However, a move through the 50-day EMA ($0.38383) would signal a break of R1 ($0.3890) to give bulls a run at the 200-day EMA ($0.39009) and 100-day EMA ($0.39015). A move through the 50 day EMA would send a bullish signal.

By Audy Castaneda

A Higher CPI in the US Could Be Beneficial for the Crypto Market

Audy Castañeda
-
0
<strong>A Higher CPI in the US Could Be Beneficial for the Crypto Market</strong>

US monthly headline inflation is 0.5%, up from 0.1% in December 2022, while core CPI was 0.1% higher than 0.3% in December 2022. Crypto markets and stocks were mostly flat, having previously absorbed disinflation rhetoric from Jerome Powell.

The monthly headline CPI for January 2023 increased 0.5%, while the core CPI, excluding gas and energy prices, increased 0.41%, compared to 0.3% in December 2022.

The so-called re-inflation seen in the core CPI has some investors worried that equity markets could turn bearish, even as cryptocurrencies rally.

Higher Core CPI Keeps Crypto Flat, Beware of Re-inflation

After the CPI news broke, macro commentator @tedtalksmacro suggested that rising core inflation will push markets lower.

Federal Reserve Chairman Jerome Powell said that because housing creates a floor for headline inflation, and the Federal Reserve prefers to look at core CPI to determine the effects of rising interest rates.

Stock markets were mostly flat after the news, with Dow Jones futures down 5 points, while S&P 500 futures were down 0.12%. Treasury yields fell 2-3 basis points before rising, and then falling lower than before the CPI data was released.

Housing costs, which drove the overall increases, rose 0.7% in January 2023 and 7.9% from a year earlier. Medical expenses fell 0.7%, while air fares fell 2.1%.

The so-called general consumer price index offers granular information on the average price change of a basket of goods and services. Core CPI, on the other hand, excludes food, energy and housing costs.

After the announcement, Bitcoin fell to $21,600 but then rose to $22,000. ETH also fell to around $1,501 but recovered to $1,547. ADA rose 2% to about 38 cents after dipping to less than 35 cents, while SOL fell to $21.11 before rising to $21.96.

Markets Rally on “Disinflation” Rhetoric at Last FOMC Meeting

The strength of the US economy, evidenced by the highest employment rate in more than a decade, as well as Fed Chairman Powell’s admission that the “disinflationary process” had begun in his speech to the Federal Committee on Open Markets, has driven markets mostly positive in recent weeks despite the risks of a mild recession in 2023.

“Inflation is declining, but the path to lower inflation is likely not to be easy,” said Jeffery Roach of LPL Financial.

At the same time, Powell warned that it would be “very premature to declare victory or to think that we actually got it done.”

Analysts expect the Fed to raise interest rates by 25 basis points at its next Open Markets Committee meeting in late March 2023, taking the fed funds rate above 5.1%.

Powell anticipates that interest rates will continue to rise through the end of 2023, unless the bank sees inflation come down faster.

By Audy Castaneda

Bitcoin Price Recovers to $22,000

Audy Castañeda
-
0
<strong>Bitcoin Price Recovers to $22,000</strong>

Bitcoin price has retraced the $22,000 level, but pending regulatory action against stablecoins and today’s CPI report are in the crosshairs of many investors. After Bitcoin’s recovery, has the crash been canceled or will losses continue to be seen in the coming weeks?

After twenty days of holding the support of USD 22,500, the price of Bitcoin (BTC) finally broke out on February 9. Bulls had pinned their hopes on a sustained rally, but this has been replaced by a narrow trading range with resistance at $22,000.

The downtrend is even more worrisome, considering that the S&P 500 is trading near its highest level in six months, while the broader cryptocurrency market continues to correct.

The Bitcoin price has risen above the $22,000 mark again in the past few hours. Previously, the price fell from over $23,000 to $21,500. As a result, there was a threat of a bigger fall or even a crash.

The Bitcoin price registered a strong increase in January. After rising from $16,500 to over $23,000, the price had to dip below $22,000 in recent days. The course has lost more than 5 percent in value in recent days.

In the last 24 hours, however, the price of Bitcoin has risen again to a value of more than $22,000. With this increase, the fall of the last few days was stopped, and the price was able to recover by a small percentage.

Has Bitcoin’s Fall Stopped Now?

With the increase in the last hours, the downward trend of the last days has stopped for the moment. It looked like the market could see another big drop in the next few days. Bitcoin price was on its way to undercut the $20,000 mark, which could trigger another price crash.

With the rallies of the last few hours, another dip or crash may have been delayed a bit. There is also a possibility that the market will continue to go higher for the next few days and that the Bitcoin price may even attack the resistance at $23,000 again.

Will Bitcoin Price Drop Below $20,000 Soon?

It is preferable to assume that the price of Bitcoin could drop below the $20,000 mark again in the coming days or weeks. Such losses are possible because the Bitcoin price appears to be too high at the moment given the circumstances.

Deep down there are some factors that have a negative influence. The SEC fined Coinbase and is now investigating the Paxos platform for offering BUSD. Illegal stock trading is said to be present again. Furthermore, there are still rumors about the Digital Currency Group, whose failure could even push the price of Bitcoin below $15,000.

By Audy Castaneda

Bitcoin at $500,000 in 2030? This Forecasts Cathie Wood

Audy Castañeda
-
0

The American investor assured that her fund focused on innovation is the “new NASDAQ”, after having obtained a profit of close to 40% in the first months of 2023.

Cathie Wood is one of the most recognized and respected analysts in the Wall Street environment. The expert recently assured that a good future is in store for Bitcoin, and that, in the coming years, its price will take off significantly.

Wall Street guru Cathie Wood has been characterized as a faithful cryptocurrency enthusiast, having even recently acquired $30 million in Coinbase shares. On this occasion, Wood published a report called ‘Big Ideas 2023’, in which she made it clear that there is an interesting future for Bitcoin.

According to Wood, who currently serves as executive director of the firm Ark Invest, this digital asset would reach $500,000 in the coming years. Despite having a worrisome 2022, the Bitcoin outlook has changed significantly in the first months of 2023, scoring a 43% rise.

The report also indicates that Bitcoin continues to position itself as one of the best investment options, despite how difficult the year 2022 was:

“The fundamentals of the flagship cryptocurrency remain strong, and indeed, the recent crisis in the industry has only strengthened bitcoin’s long-term opportunities.”

“The New NASDAQ”

This is not the first time that Cathie Wood has been so openly supportive of the world of cryptocurrencies, making some rather controversial claims. At the beginning of February 2023, the American investor assured that her fund focused on innovation is the “new NASDAQ”, after having obtained a profit of close to 40% so far in 2023, adding almost double that of the Nasdaq 100.

Likewise, Wood reiterated his forecast that Bitcoin will exceed a million dollars per coin in the next decade.

Cathie Wood not only defends and supports investments in cryptocurrencies but also trusts companies with disruptive business objectives, which have a double-digit growth forecast on their value in no more than five years.

Wood is an enthusiast for topics such as Artificial Intelligence, the human genome, 3D printing, and space exploration, among many others, which is why she revealed her disagreement with the difficulties that these industries had to go through in 2022, by saying that “innovation was one of the biggest casualties of the massive interest rate hike we saw last year.”

ARK Success Amid Crisis

In the past year, ARK, the investment firm Wood founded in 2014, has taken in $37 billion for its new investments, a figure second only to two other investment management companies Vanguard Group and iShares, which manage hundreds of funds.

In fact, Ark Innovation, the main fund that Wood manages, has grown 10-fold in size in the last year to $22 billion.

By Audy Castaneda

1...556557558...1,654Page 557 of 1,654