Both Bitcoin and Ethereum could not sustain the gained momentum and fell below the $23,000 and $1,600 levels, respectively. This affected the overall value of the cryptocurrency market as it fell by 3.52% to reach $1 trillion.
Since the beginning of 2023, the cryptocurrency markets have risen, and in recent days the value of Bitcoin has increased by more than 40%. However, Bitcoin’s rally seems to be fading as it has started to fall below $23,000.
However, the recent downward trend can be explained by reports indicating a surge in cryptocurrency fraud last year, with around $1 million stolen in the Swift Current and Maidstone communities alone.
Moving on, traders seem hesitant to make any strong bets ahead of this week’s United States economic growth data. The market is currently focused on fourth-quarter US GDP figures due on Thursday, which could set the tone for the Federal Reserve’s Jan. 31-Feb. 1 policy meeting.
The Fed is expected to raise interest rates by 25 basis points (bps) at next week’s policy meeting, according to most investors.
If there are signs that the US economy is slowing and the Fed will soon pause its tightening cycle and lower interest rates, the value of cryptocurrencies could rise.
Cryptocurrency scams on the rise
According to the Saskatchewan RCMP, the Swift Current and Maidstone areas lost nearly $1 million to the rise of cryptocurrency scams last year. RCMP in Swift Current received reports from 105 citizens that they were victims of scam phone calls, some of which involved Bitcoin.
According to sources, the scam cost victims in the region a total of $360,000. Victims lost a total of $570,000 in 37 cryptocurrency fraud charges filed by RCMP in Maidstone.
It’s also worth noting that scammers have used a variety of methods, including deceptive advertising, authority scams, and fake courses to teach people how to trade cryptocurrencies.
In addition, the Federal Bureau of Investigation said two cyber organizations linked to North Korea, Lazarus Group and APT38, were responsible for stealing $100 million from US crypto company Harmony’s Horizon bridge in June.
Binance presented Bitzlato with $346 million
Binance has processed approximately $346 million in bitcoins for digital currency exchange Bitzlato, whose creator was arrested last week by US authorities on suspicion of money laundering.
According to the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), Binance, the world’s largest cryptocurrency exchange, was one of Bitzlato’s top three counterparties in terms of bitcoin received between May 2018 and September 2022.
As a result, this news has had little impact on the crypto market so far.
The CEO of ARK Invest predicts the growth of cryptoassets
According to the CEO of cryptocurrency and technology investment company ARK Invest, the value of cryptoassets will change significantly this year due to falling inflation and a change in the Fed’s monetary policy.
As a result, this can be seen as a positive for cryptoassets, helping them limit their losses.
Unlocking the Potential of Bitcoin Micropayments for Content Platforms
Another factor that could support the cryptocurrency market is the news that cryptocurrency has gained popularity in a number of areas, allowing users to micro-monetize their activities.
ZEBEDEE, a financial services provider, and Fountain, a profitable podcasting platform, announced a new partnership on January 24 to allow podcast viewers to make Bitcoin (BTC) micropayments.
At the same time, the integration of debit and credit card connections, made possible by the partnership with ZEBEDEE, allows customers to use them without prior knowledge of cryptocurrency.
Bitcoin price
Bitcoin is currently valued at $22,667 with a 24-hour trading volume of $27 billion. Bitcoin is down almost 1.50% in the last 24 hours. With a real market cap of $437 billion, CoinMarketCap currently ranks #1.
Bitcoin fell to the $22,325 support level and a doji candle close above this level indicates that a bullish bounce is still possible.
On the other hand, the immediate resistance level for Bitcoin is $23,250 and a break above this level could see BTC reach the $23,900 and $25,150 levels.
On the other hand, a bearish breakout of the $22,325 level could extend the selling trend towards the $21,500 barrier. If Bitcoin breaks below $21,500, it could fall to $20,450.
Ethereum price
Ethereum is currently trading at $1549 & has fallen by 5.34% in the last 24 hours with a total trading volume of $9.1 billion. It has a current CoinMarketCap rating of 2 and a real market capitalization of $189 billion.
On the other hand, ETH is expected to face immediate resistance at $1,600 and a move above this level could take ETH to $1,675.
On the 4-hour timeframe, the ETH/USD pair broke the ascending channel at $1,600, and a close below that level triggered additional selling, pushing the price down to the $1,525 level.
On the other hand, a bearish break of $1,525 could open up additional selling space up to $1,445.
