Bitcoin rose in price today, but was steadily declining. Today’s values are only slightly better than the all-time low reached on Wednesday, when Bitcoin fell by as much as 4.5%. Ethereum also fell with value below yesterday’s high; this drop was driven by inflationary concerns and uncertainty in China’s cryptocurrency market.
However, the reason for its further decline can be attributed to the increasing threats of hacking as the number of digital currencies increases.
North Korean hackers have been attacking cryptocurrency exchanges and using phishing schemes to steal digital money for years. These attacks have recently become more frequent. This was considered one of the main factors contributing to investor confidence and cryptocurrency losses.
In their official statements, Fed Chairs Joshua Rosner, Lyle Brainard and Randall Quarles called the decline in bitcoin prices a good thing and insisted that central banks will continue to raise interest rates steadily. The Fed has hinted that it will soon be more aggressive, which is in line with expectations for cryptocurrency. In addition, it is considered a key factor in keeping the cryptocurrency market low.
Risk-free crypto market sentiment
The global cryptocurrency token failed to extend its earlier rally and lost some of its positions below around $1.05 trillion for the day. The agenda for the Fed’s next meeting is online, and the market reacted quickly on Wednesday to the Fed’s decision to signal a rate hike later this year.
However, the market’s recent gains began to slow as it became more apparent that we would see interest rate hikes more quickly after additional comments from Federal Reserve officials.
This had a significant impact on the market. Bitcoin, the world’s most expensive cryptocurrency, has rebounded from last month’s decline only to break below its support level each time.
Other cryptocurrencies such as Dogecoin, Ripple, Litecoin and Solana saw both red and green value in price.
Many central bankers at the Federal Reserve want interest rates to go higher before they get harder.
Federal Reserve Chairman Christopher Waller and New York Fed President John William have called for such a move because there is reason to worry that high inflation is due to the continued strength of the labor market.
Fed Chairman Jerome Powell warned that inflation is falling, but more increases are likely.
Wednesday’s US consumer price index is an indicator of inflation in the economy and will be one of the indicators investors watch to determine future monetary policy, so they’re keeping an eye on it next week.
SEC Plan to Monitor US Crypto Brokers
The US Securities and Exchange Commission (SEC) has promised to begin monitoring cryptocurrency brokers and advisors, making sure they adhere to appropriate standards when providing financial offers, recommendations and advice to their clients.
According to Richard Best, the agency aims to comply with the rules and ensure the safety of its clients’ funds. This will give investors peace of mind knowing that no one can steal their money. This plan can actually be considered a positive factor for the cryptocurrency market as it will help them work towards improving auditing standards, transparency and risk management.
Dubai’s new rules
Dubai is establishing itself as a hub for virtual assets and is attracting more than 500 crypto companies to its digital asset ecosystem. Dubai aims to become a hub for virtual assets, offering an international legal framework and support that could allow businesses to thrive.
VARA aims to support these efforts by providing regulations and offering services so businesses can maintain a competitive edge.
On Tuesday, February 7, 2023, Dubai’s Virtual Asset Regulatory Authority (VARA) released its much-anticipated regulations to regulate the local cryptocurrency market.
10 Rules: Anti-Money Laundering, Marketing, Licensing and Purchasing Requirements, Ban on Cryptocurrency Holdings, and Self-Regulation with the Advertising Industry.
As a result, this was seen as another key feature that could help the cryptocurrency sector reduce hacking incidents and protect investors’ assets.
Bitcoin price
The current price of Bitcoin is $23,206 and the 24-hour trading volume is $26.9 billion. Bitcoin is up 1.13% in the last 24 hours. With a real market capitalization of $447 billion, CoinMarketCap is currently ranked #1.
On the 4-hour timeframe, Bitcoin is currently facing immediate resistance at $22,750, and a candle close below this level could potentially send BTC price down to $22,300 or $22,000.
As technical indicators such as RSI and MACD are in the sell zone, increased selling pressure could push the price of Bitcoin towards the $21,500 mark.
Additionally, the BTC/USD pair may face support at $22,750, a close above this level could take BTC to $23,350.
Ethereum price
The current price of Ethereum is $1,632 and the 24-hour trading volume is $8.7 billion. Ethereum lost 2.5% in the previous 24 hours. CoinMarketCap is currently ranked #2 with a current market cap of $199 billion.
The ETH/USD pair broke the symmetric triangle extending the resistance at $1,675, and a candle close above this level is expected to push the ETH price towards $1,725 or $1,725.
A break below the $1,620 level, on the other hand, could expose BTC to the $1,550 levels.
