Bitcoin (BTC-USD) is projected to finish the week 6% lower, following the downward trend of the stock market, as investors remain wary of taking risks due to the current macroeconomic insecurity which has been exacerbated by the higher-than-expected inflation data.[0] The data confirmed worries that the Federal Reserve will need to hold a tighter policy for longer than what was anticipated.[0] The market is predicting that there is a 75% chance that the interest rate will reach 5.25% or higher by the time the Federal Reserve’s June meeting concludes.[0]
Risk aversion has put a stop to the brief upswing in bitcoin (BTC-USD) last week, which was caused by higher-than-normal short liquidations.[0] This week, Bitcoin failed to remain above the $25,000 mark and traded within a range of $23,040 to $25,130.[1] Regulatory Crackdown Sam Bankman-Fried, disgraced cofounder of failed crypto exchange FTX (FTT-USD), has been slapped with additional criminal charges from federal prosecutors.[0] On Thursday, Sam Bankman-Fried was hit with four criminal charges in a fresh indictment.[2] This text expands upon the accusations of unlawful political contributions made by the ex-FTX CEO.[2]
Kitco senior technical analyst Jim Wyckoff observed that the early decline had little effect on the prices of March Bitcoin futures, with prices remaining close to steady in Thursday’s early U.S. trading.
On Friday, stocks related to cryptocurrencies dropped, including Hut 8 Mining (HUT) at -8.4%, Marathon Digital (MARA) at -8.4%, Riot Platforms (RIOT) at -7.9%, CleanSpark (CLSK) at -6.8%, and Coinbase (COIN)[0]
Friday morning’s U.S. trading saw March Bitcoin futures prices close to steady. Not much had changed. The sideways price action this week is standard and not indicative of a bearish stance. Bulls are still in control of the near-term technical advantage as the daily chart has seen an increase in price.
Based on Bitcoin’s current all-time high of approximately $68,000, if the price of Bitcoin is halved in May 2024, it could be worth around $34,000.[3]
0. “Bitcoin on track for 6% weekly loss as investors avoid risky bets after hot inflation data” Seeking Alpha, 25 Feb. 2023, https://seekingalpha.com/news/3940914-bitcoin-on-track-for-6-weekly-loss-as-investors-avoid-risky-bets-after-hot-inflation-data
1. “Bitcoin Live Price Today: Is the BTC Bounce a Tactical Short-Bloomberg Statergists Makes a Point!” Coinpedia Fintech News, 21 Feb. 2023, https://coinpedia.org/bitcoin/bitcoin-live-price-today-is-the-btc-bounce-a-tactical-short-bloomberg-statergists-makes-a-point/
2. “Bitcoin’s Massive Rollercoaster and Coinbase L2 Network Base: This Week’s Crypto Recap” CryptoPotato, 24 Feb. 2023, https://cryptopotato.com/bitcoins-massive-rollercoaster-and-coinbase-l2-network-base-this-weeks-crypto-recap
3. “This Is How Bitcoin Could Increase 700% by 2025” The Motley Fool, 21 Feb. 2023, https://www.fool.com/investing/2023/02/21/this-is-how-bitcoin-could-increase-700-by-2025/