Bitcoin (BTC) and Ethereum (ETH), two of the most popular cryptocurrencies in the world, have not been able to stop their losses and are still trading in the red below the $23,000 and $1,600 marks respectively.
Traders are reluctant to make any strong offers ahead of a critical week of economic events in the United States. This week will see the release of non-farm payrolls and remarks from US Federal Reserve Chairman Jerome Powell, making this a crucial moment for the market.
BTC has struggled to rise above the $22,800 level, and if the bears manage to push the price below the current level, the next support level will be $21,480.
The second-largest cryptocurrency, Ethereum, also saw a lack of trading activity near the $1,500 mark, indicating volatility among buyers and sellers.
Risk-free market sentiment
The global cryptocurrency market has been in a downtrend for the past few weeks, with prices falling across the board. The main reason for this drop is the bearish market sentiment that has negatively affected the price of Bitcoin.
However, this current market situation may also affect BTC supply. When people lose confidence in the market, they may decide to sell their bitcoins, increasing the supply and driving prices down even further.
There is a glimmer of hope in the midst of the current drop in Bitcoin and Ether prices. If investors view the Silvergate suspension as a minor setback rather than a major negative event, the current bearish trend may not last long.
It is worth noting that Bitcoin and Ether have a significant market capitalization and are closely related. Therefore, any positive result for one cryptocurrency can have a favorable effect on another.
The growing interest of major financial institutions in Bitcoin and Ether is another factor that could contribute to the increase in their prices.
Over the past few months, many large financial institutions have expressed interest in investing in Bitcoin or offering Bitcoin-related services to their clients. This increased institutional demand for Bitcoins and Ethers can help increase their value.
Regulatory crackdown undermines BTC
The government’s intense crackdown on cryptocurrencies has driven down the prices of Bitcoin and Ether. Because cryptocurrencies operate in a legal gray area, governments around the world are still struggling to regulate them. Heavy government crackdowns on cryptocurrencies are causing demand for Bitcoin and Ether to drop.
This could lead to increased anxiety among investors and traders, as well as increased volatility and fear of legal consequences.
Governments and regulators may implement policies that restrict or prohibit the use or trading of cryptocurrencies, which may reduce demand for Bitcoin and Ether, causing their value to decline.
Moreover, investor sentiment may turn negative as they sell their holdings due to the lack of confidence in the future prospects of cryptocurrencies caused by regulatory actions. This may cause cryptocurrency prices to fall.
In summary, investors should keep a close eye on any potential regulatory crackdown on cryptocurrencies, as it could significantly impact the value of Bitcoin and Ether.
The Bearish US Dollar – A Look at the Feds’ Testimony
On Tuesday, the US dollar remained cautious in anticipation of the testimony of the chairman of the Federal Reserve System, Jerome Powell. The U.S. dollar index, which measures the greenback against six major currencies, fell 0.077% to 104.170 after falling 0.26% overnight.
The index fell 0.6% for the month after rising 2.6% in February.
Investors are looking forward to February employment data due on Friday, but their main focus is on Federal Reserve Chairman Jerome Powell’s testimony before Congress on Tuesday and Wednesday.
The Fed has raised interest rates by 25 basis points at its last two meetings, following a significant hike the previous year. However, strong economic data in February raised fears that the central bank may resume large-scale moves.
Meanwhile, the cautious stance of the US dollar could help the cryptocurrency market regain some momentum.
Bitcoin price
Currently, the real price of Bitcoin is $22,465 and the 24-hour trading volume is $15.6 billion. Bitcoin is up 0.37% in the last 24 hours. With a real market capitalization of $433 billion, Bitcoin ranks first in the CoinMarketCap ranking.
It has a circulating supply of 19,310,450 BTC and a max supply of 21,000,000 BTC.
According to technical analysis, the BTC/USD pair is currently in a consolidation phase, trading in a narrow range between $22,000 and $22,500.
A break out of this range, either up or down, can lead to significant price movement in the Bitcoin market.
If the BTC/USD pair breaks above the $22,500 level, it could trigger a rally that could potentially push the price of Bitcoin towards the $22,800 or $23,250 levels.
Conversely, if the support levels around $22,000 or $21,750 hold, it could lead to a bounce.
Ethereum price
The current price of Ethereum (ETH) is $1,573.86 with a 24-hour trading volume of $4.9 billion. Ethereum is up almost 1% in the last 24 hours. Ethereum currently ranks second on CoinMarketCap with a real market capitalization of $192 billion.
Looking at the technical side, the ETH/USD pair is currently trading in a tight range between the $1,550 and $1,580 levels.
If the price of Ethereum falls below the $1,560 level, it may find support at the $1,500 mark. However, it is worth noting that there is significant resistance at the $1,620 or $1,680 levels, which could limit the price’s further decline.
