Why It Could Be Disastrous for Cryptocurrencies If the Fed Raises Interest Rates by 50 BPS

Audy Castañeda
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<strong>Why It Could Be Disastrous for Cryptocurrencies If the Fed Raises Interest Rates by 50 BPS</strong>

The crypto and legacy markets could see a spike in volatility in a few hours, according to Jeremy Siegel.

Jeremy Siegel, the Wharton School of Business Professor, told CNBC’s ‘Closing Bell: Overtime’ that “it will be a disaster” if the United States Federal Reserve (FED) increases rates by 50 basis points on February 1, 2023.

FED’s Need to Increase Interest Rates by 0.25%

The Professor insisted that if the FED mentions any figure “that’s not 25 basis points” during today’s meeting, the effects would be far-reaching.

Besides the interest rate changes, Siegel would like the Fed to reword its statement and explicitly mention that its monetary policy decisions in recent months have been working. He adds that it would be refreshing for the Fed to reassure the market that they are near the end of their tightening cycle.

Legacy and crypto market participants expect the US central bank to slow down rate hikes in the coming months. However, the hope of traders and investors could be dashed if policy makers assess market conditions differently and see the need to keep rates high.

Economists expect the Fed to raise interest rates by 25 basis points to 4.75%, up from 4.50% on February 1, 2023. The bank began raising interest rates in January 2022. Over the months, the prevailing interest rate in the United States increased from 0.25% in January 2022, to 4.50% at the end of 2022.

Falling Inflation, Rising Crypto, and Bitcoin Prices

Inflation is one of many factors, including employment conditions, that the Fed considers when determining interest rates. The effects of the COVID-19 pandemic, as well as the need for the government to intervene and protect its citizens, caused governments to cut rates to record levels.

According to Siegel, inflation was inevitable with “money pouring in over and over again,” and it did so significantly in 2021 and 2022. Recent readings show that the Consumer Price Index (CPI), a metric tracking pressures of consumer goods prices and a gauge for inflation, has slowed down after hitting multi-year highs.

In December, inflation fell to 6.5%, making it the sixth consecutive month of falling consumer prices. It peaked at 9.1% in June 2022 before falling to 6.5% in December, 1% less than January 2022, when inflation stood at 7.5%.

Bitcoin prices briefly rebounded in December 2022, bottoming out after losing more than 60% in thirteen months since November 2021, in reaction to changing macroeconomic conditions, inflation being the most important.

In recent weeks, Bitcoin prices have been rising, as the crypto market expects inflation to cool and the Fed to ease its tightening in 2023.

For this reason, the way the Fed acts could shape the short-term price formation for Bitcoin. The coin pulled back sharply from around $24,000 on January 30, but leveled off yesterday.

By Audy Castaneda

The Big Dogecoin Forecast for February 2023

Audy Castañeda
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<strong>The Big Dogecoin Forecast for February 2023</strong>

Dogecoin’s course may take several directions in the coming weeks, although it is difficult to say which scenario is most likely.

The Dogecoin course was able to record good price increases in January. However, these gains were not as strong as other cryptocurrencies, which seems strange for the meme coin. That doesn’t mean, though, that there won’t be a strong rally in the coming weeks.

The Dogecoin price has seen a stronger rise in recent weeks. The DOGE has risen to around $0.090 since the start of the year from $0.069. Within this increase there were well-known strong fluctuations. Still, we have to keep in mind that while the overall rise was significant, it was smaller than many other altcoins.

The price increase followed sharp ups and downs in the last weeks of 2022. Above all, the acquisition of the short message service Twitter by DOGE fan Elon Musk drove the price up enormously. After that, it massively collapsed due to the FTX crash. By contrast, in January 2023 it was pretty “cool” in regards to Bitcoin.

Why Couldn’t the Dogecoin Price Raise that Much in the Last Weeks?

The Dogecoin course could definitely rise strongly in the last four weeks. But compared to other Altcoins like ADA or SOL, the course could not grow that massively. Here there is a phenomenon where a certain currency tends to calm down after unexpectedly large increases or an unexpectedly large fluctuation.

Therefore, DOGE’s rise was already somewhat ahead of the market as a whole in Q4 2022. As a result, the price could not go as high this January. The market as a whole has “caught up”. However, this also means that another Dogecoin rally may be imminent soon, which may affect the Dogecoin forecast.

The Dogecoin’s course may take several directions in the coming weeks. On the one hand, the general market could continue to increase, and in this case, the price of Dogecoin would increase considerably. However, a slight drop or even a major drop in the market is also possible in the coming weeks.

The Dogecoin course could move in 2 different directions in the coming weeks. These rashes can be quite serious.

How High Can the Dogecoin Price Go According to the Forecast?

A rise in the Dogecoin price is possible in the coming weeks if the general market increases. In this case a rise in Dogecoin to $0.11-$0.13 would be possible until the end of February.

In the second scenario, the broader market would see another stronger decline that would take the price of Bitcoin to $20,000 or even below the $20,000 mark. In this case, the Dogecoin forecast would be $0.05 to $0.07 by the end of February.

In summary, Dogecoin (DOGE) remains an extremely speculative investment, as the Dogecoin forecast for February shows. Especially these days, the market is hard to forecast. Therefore, only what is already being lost should be invested.

A long-term investment in the DOGE is also possible. Here too there is a higher risk for the meme coin.

By Audy Castaneda

Five Altcoins to Watch out for in February 2023

Audy Castañeda
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<strong>Five Altcoins to Watch out for in February 2023</strong>

These are the following: Cardano (ADA), Filecoin (FIL), Flux (FLUX), Internet Computer (ICP), and PRIMAL.

Here are the facts: Cardano’s overcollateralized (ADA) stablecoin will launch this week. Filecoin (FIL) will undergo a network upgrade, while the PRIMAL mainnet will be launched. Finally, Flux (FLUX) will halve its block rewards, and Internet Computer (ICP) will host a meeting to discuss the most interesting decentralized finance (DeFi) projects.

Cardano (ADA) Tops List of Altcoins to Watch

The price of the Cardano cryptocurrency is up 66% since the beginning of the year and broke a long-term resistance line on January 9th. The price is now very close to the $0.42 resistance zone. A break in the price could accelerate the rise of ADA towards $0.52, while a rejection could lead to a retest of the support at $0.33.

Filecoin (FIL) Refreshes Its Network

Filecoin Virtual Machine (FVM) will launch in February and will be rolled out gradually to reduce the risk of disruption.

The FIL cryptocurrency price broke above a descending resistance line on January 8th. It then recaptured the resistance located at $5 and then validated it as support on Jan 25th (green arrow).

The trend remains up, as long as the altcoin does not close below this $5 zone. In this case, resistance would be found at $6.50. On the flip side, a close below $5 could lead to a fall to the ascending support line located at $4.50

Internet Computer (ICP) Announces Meeting Focused on DeFi

On February 6th, Internet Computer will hold a meeting with the most interesting DeFi projects that are developed on the Blockchain.

The ICP altcoin price broke a descending resistance line on Dec 28, 2022, and has so far reached a high of $6.28. That being said, the price remains below the 0.5 Fibonacci retracement resistance line at $6.58.

If the price breaks out of this zone, it could rally toward its next resistance located at $7.15. Conversely, a rejection from this area could lead to a retest of the $5 support.

Flux (FLUX) Halves Its Block Reward

On February 4th, the FLUX block rewards will be halved from 75 to 37.5 FLUX per block reward.

The price of the FLUX altcoin broke through the resistance at $0.92 and validated it as support on January 30. If it continues to rise, the next resistance would be at $1.43. Conversely, a close below the $0.92 support zone could lead to a drop to $0.69.

Launch of PRIMAL Main Network

The main network (or mainnet) of PRIMAL will go live on February 2.

The PRIMAL altcoin price reached an all-time high of $0.014 on January 20th. It then returned to validate the $0.009 support zone five days later.

If the move-up holds, the next resistance would be at $0.015 and would be created by the 1.61 outside Fibonacci retracement of the previous drop. Conversely, a close below $0.009 could lead to a drop toward $0.007.

To conclude, these five altcoins introduce interesting projects planned for February, which could have a positive effect on their respective prices.

By Audy Castaneda

Dogecoin and Shiba Inu Price Predictions Collapse While Metacade Soars

Audy Castañeda
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<strong>Dogecoin and Shiba Inu Price Predictions Collapse While Metacade Soars</strong>

DOGE and SHIB are currently over 90% below their all-time high (ATH) and their price predictions portend a tough road ahead.

It is widely believed that the GameFi industry has a brighter future than meme coins. GameFi can revolutionize the entire gaming industry, while meme coins don’t do much. Therefore, the price predictions for Dogecoin and Shiba Inu are less optimistic than for Metacade, a new platform that could change the game forever.

Dogecoin and Shiba Inu price predictions are likely to provide investors with gains, but it is unclear if the two meme coins will ever reach their previous highs. DOGE peaked at $0.74 in 2021, while SHIB hit $0.000088 around the same time.

Explosive price action ensued during this period, as both meme coins peaked at the peak of the bubble in 2021. DOGE and SHIB, however, saw severe price declines in 2022.

GameFi’s new Metacade platform, on the other hand, has a very different future ahead of it. The MCADE token recently launched its pre-sale, raising over $3.5 million in fundraising over nine weeks. Now, Metacade could become one of the major players in the Blockchain gaming space.

Will DOGE Reach $1?

DOGE is expected to reverse its downward trend in the coming years, as the broader crypto market recovers from the current bear market. However, the utility of the DOGE ecosystem is not comparable to that of other major altcoins, which could wipe out the token’s profits.

DOGE may find it difficult to break the resistance at $0.31, which challenges the $1 long-term price target. If DOGE manages to break through, it can target its previous all-time high at $0.74.

Will SHIB Reach $0.0001?

The Shiba Inu price prediction shows that SHIB is a long way from $0.0001. The token is facing stiff resistance at $0.000021 and $0.000035, so there is still work to be done before it can reach its previous ATH of $0.000088.

However, if SHIB can break these levels, according to the Shiba Inu price prediction, it could hit $0.0001 in the next few years, especially if the Shibarium upgrade is successful, and the project expands the number of dApps available on the market. ecosystem.

Will MCADE Reach $5?

Metacade has great growth potential in the coming years. Contrary to Dogecoin and Shiba Inu price predictions, Metacade will enter price discovery once the pre-sale is complete. In the early years, there will be little resistance to MCADE, as new cryptocurrencies often make incredible early-stage gains.

After the pre-sale, not only will the project gain momentum, but the broader crypto market will pick up around the same time. Therefore, Metacade has the potential to skyrocket in 2023 and beyond, reaching $5 by 2025.

In conclusion, Metacade is likely to be a great buy in 2023, but investors need to be quick to get the best possible price. The value increases from $0.008 to $0.02 over the course of the event, with each funding round expected to be completely depleted.

By Audy Castaneda

Ethereum (ETH) – Towards a Bounce Extension Beyond $1700?

Audy Castañeda
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<strong>Ethereum (ETH) – Towards a Bounce Extension Beyond $1700?</strong>

The latest technical analysis leads to believe in a bounce extension of the prince of cryptos.

In just over 24 hours the next FED meeting will take place. Many investors are hoping for a favorable outcome to extend the start of the year cryptocurrency festivities, especially since much of the rally translated into hopes of a change in monetary policy from the US central bank.

The Ethereum (ETH) price broke free from FTX pre-bankruptcy levels, and could now go on the offensive in the face of major resistance, which is causing serious headaches for the bulls.

Humility remains in order, as long as there are no catalysts that could make them give in. By wanting to take in too quickly that US inflation is quietly slipping back below 2%, bulls could be at the mercy of an unexpected hangover.

In a market context in which there have been no major setbacks so far, the following are possible scenarios for the Ethereum price at the moment, and after the FED meeting.

Ethereum in Weekly Units – Prices Still Above Kijun

During a series of four consecutive weeks of increases, Ethereum remains in a position to exceed $1,700. Currently, it is up and in contact with the Kijun. In parallel, the Chikou Span stays on course and beyond the Tenkan.

Assuming a bullish extension beyond $1,700, the Ethereum price would go into the cloud, eventually attacking $2,300. The bears would stop being masters of their destiny, while the bulls would start to regain confidence, without necessarily declaring victory in the near future.

It would be possible to see the prince of cryptocurrencies again under the Kijun, simultaneously with the support of $1,400 and the Tenkan, which in turn stopped its bullish momentum at the beginning of the week. In such a case, there would be more clues about the consistency or not of the current rebound.

Ethereum in Daily Units: Losing Momentum since January 20

Since January 20, the Ethereum price has alternated small sessions both up and down near $1,700 in daily units.

The bulls would be potentially reassured by the favorable position of the course and that of the Chikou Span over the Kumo. On the other hand, a consolidation would not destroy the chances of building a full-scale rebound, as long as the recently broken levels fully play their supportive role. In this sense, the real job of the bull would be to preserve $1,400 at all costs, so that this support is positioned at the same height as the lower stop of the future Kumo, the Senkou Span B (SSB).

The break of $1,400 would lead to renewed uncertainty on the bullish side, with the prospect of ETH price falling back below FTX trading levels, towards $1,200. This would coincide with a drop in prices and the Chikou Span, respectively, below and within the cloud in the coming days. From this future observation, the bears could come out of their hibernation. And among other things, they might have ambitions to take momentum towards last year’s lows, not far from $1,000.

By Audy Castaneda

ETH Bulls in Need of $1,700 Shanghai Hard Fork Upgrades

Audy Castañeda
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<strong>ETH Bulls in Need of $1,700 Shanghai Hard Fork Upgrades</strong>

This Sunday was bullish for Bitcoin (BTC) and Ethereum (ETH), with BTC hitting a new 2023 high of $23,962.

Ethereum (ETH) was up 4.64% on Sunday. Reversing a 1.63% loss on Saturday, ETH ended the week up 1.04% to $1,645. Despite the bullish session, ETH revised below $1600 for the seventh session in a row.

A mixed start to the day saw ETH fall to an early morning low of $1,567. Pulling away from the first major support level (S1) at $1,550, ETH rallied to a late high of $1,661. ETH broke above the first major resistance level (R1) at $1,601, and the second major resistance level (R2) at $1,629, to end the day at $1,645.

On Sunday, Bitcoin (BTC) rose 3.11%. Reversing a 0.16% loss from Saturday, BTC ended the week up 4.55%, at $23,746. BTC hit a new 2023 high of $23,962, and avoided below $23,000 for the first time since August 19, 2022.

A mixed start to the day saw BTC fall to an initial low of $23,000 before making a move. Moving away from the first major support level (S1) at $22,876, BTC rallied to a late high of $23,962. BTC broke above major resistance levels, to close the day at $23,746. The third major resistance level (R3) at $23,639 provided late support.

Fed Policy Sentiment and FTX Contagion Relief Delivered Support

There were no external market forces to provide direction for BTC, ETH, and the broader market on Sunday. However, market bets on a 25 basis point Fed rate hike on Wednesday, and a less aggressive interest rate path to bring inflation to the price support target delivered.

A less aggressive interest rate path would also reduce the chances of a hard landing, another positive for riskier assets.

For the crypto market, alleviating the risk of contagion from FTX remains the key factor in the short term. However, the latest communication from the White House created even more regulatory uncertainty for crypto investors to navigate.

The call for lawmakers and regulators to step up regulatory oversight could see the SEC step up its regulation through the enforcement mantra, without the crypto market benefiting from a clear regulatory blueprint.

Today, investors should monitor crypto newswires for updates on FTX and Genesis, and the Shanghai hard fork talk should also be considered. Investors should watch for any suggestion of a delay in the schedule of the hard fork planned for March.

In the afternoon session, the NASDAQ index will likely weigh in ahead of Wednesday’s interest rate decision.

Ethereum (ETH) and Bitcoin (BTC) Price Action

ETH was down 0.56% at $1,636. A mixed start to the day saw ETH rally to an early high of $1,648 before falling to a low of $1,632.

Meanwhile, BTC was down 0.10% to $23,723. A mixed start to the day saw BTC rally to an early high of $23,785 before falling to a low of $23,569.

By Audy Castaneda

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