Bitcoin continues its downward slide, trading around $22,886 early Tuesday morning. On the other hand, recently Ethereum was able to maintain stability at the $1,600 mark. Market players are worried after unexpectedly positive data on jobs on Friday. Meanwhile, investors await the speech of the chairman of the Fed later today.
Bitcoin trended higher in the first week of February, reaching a new high above $24,000. However, the token failed to hold the $24,000 level and the price fell below the $23,000 mark. Market experts believe that February will be less successful than January.
Market experts warn that the current trend of cryptocurrencies and stocks could change this month due to uncertainty about the possible impact of upcoming macroeconomic data from the United States on market sentiment. However, the reason for the negative trend can be attributed to the recent interest rate increase by the Federal Reserve System.
What Powell’s Speech Could Mean for Cryptocurrency Prices?
US markets were relatively calm after last weekend, with interest rates unchanged and inflation data remaining subdued. The next few times the Federal Reserve raises interest rates will depend on how the economy performs over the next period. People expect a worsening of economic conditions, which could lead to an easing of policy. Yields on the dollar and US Treasuries have been rising for some time, but that is likely to change now. This undermines the effectiveness of the Fed’s jumps around the short end of the curve as it tries to keep inflation low in its system.
His appearance at the Economic Club of Washington on Tuesday, February 7, was the highlight of the week. If the Fed is unable to significantly counter the market’s reaction, it could mean that the Fed itself is taking it easy on what’s going on. This risks pushing it further in the direction of pricing in future interest rate cuts. Several other Federal Reserve officials are scheduled to speak during the week.
Introducing the most powerful cryptocurrency miner: what it can do for you
Riot just announced that they mined 740 Bitcoins in January, a new annual record. This amount is proof that the company has succeeded in its goal of generating more bitcoins and creating new records. Analysts say this was seen as a key factor in stabilizing BCH’s price.
Riot faced significant difficulties for its business after the catastrophic collapse of its competitor and the ensuing crypto winter. The value of Bitcoin has fallen by 64% by 2022, which has affected the difficulty of mining and why it has increased.
As the price of Bitcoin rises, some companies increase their mining volumes. This is because they see an opportunity to make even more profit by using the new resources provided. Rebellion was able to increase Bitcoin mining production by 62% from January 2022 to today. They generated 740 BTC in January 2018, which is significantly higher than the 458 BTC they generated in January 2022.
Why is the US dollar losing its strength?
The recent drop in the US dollar was another important element that could limit BTC’s further losses. The U.S. dollar edged lower on Tuesday from the start of the week but remained near a one-month high as traders raised their expectations for the U.S. Federal Reserve’s interest rate levels needed to curb inflation.
Markets rebounded after Friday’s surprise U.S. jobs report showed nonfarm payrolls rose by 517,000 in January, pointing to a steadily healthy labor market.
However, the report lifted the US dollar in earlier sessions, but it gave back some of those gains in Asian trade on Tuesday after surprising traders who had been betting that the Fed’s rate hike cycle was coming to an end.
Bitcoin price
Over the past 24 hours, Bitcoin has gained more than 0.50% with a daily trading volume of $24 billion. According to CoinMarketCap, its real market capitalization is $442 billion.
Bitcoin finds immediate technical support near the $22,700 level. A candle close above this level could push the price of Bitcoin to the next resistance level of $23,200.
Further upside momentum could push the BTC price towards the $23,600 level.
Technical analysis tools such as RSI and MACD have shown signs of a possible increase in buying, which could lead to BTC’s value rising to $23,550.
The BTC/USD pair may find support at $22,750 and a break below this level could put BTC at $22,400.
Ethereum price
Ethereum’s live price today is $1,636 with a 24-hour trading volume of $6.7 billion. Ethereum is up 0.50% in the last 24 hours. CoinMarketCap’s current ranking is #2 with a real market capitalization of $200 billion.
The ETH/USD pair is trading sideways, maintaining a narrow trading range between $1,620 and $1,660. On the other hand, a break above $1,660 could push ETH to $1,680 and $1,720.
On the other hand, a break below the $1,620 level could see BTC reach the $1,550 level.
