Bitcoin is gaining strength and is now trading above the $23,000 mark following Tuesday’s statement by US Federal Reserve Chairman Jerome Powell that inflation is starting to ease. On the other hand, Ethereum was recently able to maintain stability at the $1,650 mark.
In addition, the news that Digital Currency Group and Genesis reached a preliminary agreement with their key creditors is seen as another important element that strengthened market confidence and contributed to the growth of Bitcoin.
However, the market reacted positively to the news and reached a market cap of $1.09 trillion. While Ethereum rose an impressive 3 percent to trade at $1,680, Bitcoin rose 1.72 percent to break the $23,000 barrier.
Current market scenario
The crypto market is flashing a green light and expressing confidence, as the chairman of the US Fed has signaled that the fight against inflation may be over and the process of disinflation has begun.
The market reacted quickly to the favorable news, reaching a market value of $1.09 trillion. The chairman of the US Federal Reserve System, Jerome Powell, confirmed his anti-inflationary stance yesterday. This thinking has benefited the cryptocurrency market, especially the price of Bitcoin.
As a result, the price of BTC rose sharply, reaching the level of $23,300.
In addition, the news that Digital Currency Group and Genesis reached a preliminary agreement with a group of their key creditors also played a huge role in boosting confidence in the cryptocurrency market. In particular, the agreement provides for the sale of insolvent Genesis firms, as well as the refinancing of existing loans.
Will a Bearish US Dollar Take Bitcoin to All-Time Highs?
The U.S. dollar fell on Wednesday as Federal Reserve Chairman Jerome Powell gave no hint of sharp criticism of the nation’s robust labor market. This made it more likely that interest rates would not rise much higher.
Powell acknowledged that if economic conditions remain favorable, interest rates may have to rise more than expected. But he confirmed his belief that the process of reducing inflation has already begun.
The US dollar strengthened last week after it was reported that employment statistics would show an increase in the unemployment rate and the number of people employed. But its rise was short-lived and has since declined significantly again, closer to where it was this summer.
Investors were optimistic about the US dollar index at 103.96, which eventually led to the Fed’s one-month high on Tuesday. Interest rates are expected to reach their target level of 5% by June, according to futures trading.
Genesis & Digital Currency Group reach historic deal to transform digital asset market
According to Sean O’Neill of Cleary Gottlieb, who represents Genesis, a restructuring agreement has been reached with significant creditors. The deal will restructure debt that Genesis Holdco, one of the companies that previously filed for Chapter 11 protection, owes to Digital Currency Group, the company that controls Genesis and its subsidiaries.
These terms include a second lien loan agreement with a maturity date of June 2024.
In addition, it will also include the sale of Genesis Global Trading, among other actions to maximize the recovery of the estate. As a result, this positive development has had a significant positive impact on Bitcoin prices
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 $23,325, and a candle close below this level could potentially send BTC price down to $22,750 or $22,350.
With technical indicators such as RSI and MACD in the buy zone, increasing buying pressure could push the price of Bitcoin towards the $23,700 mark. The BTC/USD pair may find support at $22,750, and a break below that level will expose BTC to the $22,400 level.
Ethereum price
The current price of Ethereum is $1,673 and the 24-hour trading volume is $8.5 billion. Ethereum has gained 2.39% in the previous 24 hours. CoinMarketCap is currently ranked #2 with a real market cap of $204 billion.
The ETH/USD pair broke the symmetrical triangle pattern that extended the resistance at $1,675, and a close of the candles above this level is likely to push the ETH price towards $1,725 or $1,725.
On the other hand, a break below the $1,620 level could see BTC reach the $1,550 level.
