Bitcoin is currently trading around the $22,800 mark and has been consolidating between the $22,500 and $24,000 mark for the past couple of weeks. On the 1-hour timeframe, the price has dropped below the support level previously watched and is now trading below the $23,200 mark.[0] The immediate short term could see the price drop further.[0]
The price of Bitcoin has shed 1.5% over the past 24 hours to $21,550 and is still below the range around $23,000 that had marked the largest digital asset’s trading range for weeks. Ethereum (ETH) has seen its price jump by 3.49% in the last 24 hours to $1,550 and the overall cryptocurrency market cap now stands at $1.028 trillion, with Bitcoin’s dominance rate at 41.6%.
Inflation data released on Thursday showed the Consumer Price Index (CPI) rose 0.5% in January on a monthly basis, which is the largest monthly increase since October.[1] Year-over-year, the Consumer Price Index (CPI) rose by 6.4%, a slight decrease from December; however, the inflation data was overall higher than forecasted by economists.[1]
Over the past week, the crypto industry has been adversely affected by regulatory measures.[1] Specifically, the Securities and Exchange Commission (SEC) ordered the Kraken crypto exchange to end its staking-as-a-service program and the crypto firm Paxos was ordered by the SEC and New York state regulators to stop issuing the U.S. dollar-backed stablecoin Binance USD.[2]
The overall market value of all cryptocurrencies is $1.03 trillion, up 2.12% on the day, and Bitcoin’s dominance rate is 41.6%. Additionally, the total crypto market volume in the last 24 hours increased by 5.20% and is currently at 58.60 billion USD.[3]
Following the US Consumer Price Index (CPI) data for January, where inflation was below expectations, the majority of cryptocurrencies experienced an increase.[4] Bitcoin has recovered from its recent lows and is now being traded at a rate higher than $22,000.[5] BTC’s next resistance now lies at the US$22,260 level, while the support lies at the $22,000 level.[6]
It is interesting to note that cryptos have been rallying despite the US Securities and Exchange Commission continuing to crack down on businesses.[7]
0. “Bitcoin Price Prediction Daily (06-Feb-2023) Retesting $21,400” Bitcoinsensus, 6 Feb. 2023, https://www.bitcoinsensus.com/bitcoin-price-prediction-daily-06-feb-2023-retesting-21400/
1. “Why Bitcoin, Ethereum, and Dogecoin Are Rising Today” The Motley Fool, 14 Feb. 2023, https://www.fool.com/investing/2023/02/14/why-bitcoin-ethereum-and-dogecoin-are-rising-today/
2. “Bitcoin, other cryptos gain even though disinflation process proves bumpy” Seeking Alpha, 14 Feb. 2023, https://seekingalpha.com/news/3935948-bitcoin-other-cryptos-gain-even-though-disinflation-process-proves-bumpy
3. “Crypto Prices Today: Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Polygon (MATIC)” CoinGape, 15 Feb. 2023, https://coingape.com/crypto-prices-today-bitcoin-btc-ethereum-eth-cardano-ada-polygon-matic/
4. “Bitcoin Spikes After CPI. But Cryptos Are Still Feeling Regulatory Pressures.” Barron’s, 14 Feb. 2023, https://www.barrons.com/articles/bitcoin-ethereum-price-crypto-markets-today-26a69413
5. “Bitcoin Price Prediction as US CPI Data is Released – Here’s Where BTC is Headed Now” Cryptonews, 15 Feb. 2023, https://cryptonews.com/news/bitcoin-price-prediction-as-us-cpi-data-released-heres-where-btc-headed-now-1.htm
6. “Cryptocurrency prices today: Bitcoin trades back up to $22,000, Ether gains as regulatory concerns ease | Mint” Mint, 15 Feb. 2023, https://www.livemint.com/market/cryptocurrency/bitcoin-trades-back-up-to-22-000-ethereum-gains-4-7-as-regulatory-concerns-ease-11676420297957.html
7. “Bitcoin’s value jumps above $22,000 as regulators dial down on crackdown” Hindustan Times, 15 Feb. 2023, https://www.hindustantimes.com/business/bitcoins-value-jumps-above-22-000-as-regulators-dials-down-on-crackdown-101676421693678.html