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Bitcoin investors and traders are anxiously awaiting the publication of US inflation statistics to see how it would affect the cryptocurrency’s price. Bitcoin has been on an incredible run since last Friday, recovering about 30% from its recent lows and hitting a new 2023 high at $26,000. The bitcoin boom occurs in the midst of a banking sector crisis and massive bank runs.
In addition to Bitcoin (BTC), Ethereum (ETH) has increased in value and is now trading above the $1,600 level. This increasing trend in the value of both BTC and ETH has contributed to a general increase in the value of most cryptocurrencies.
As a result, the future of cryptocurrencies appears bright, especially because US regulators have indicated a willingness to assist institutions that take bitcoin.
This action has boosted investor confidence and restored faith in the banking industry, resulting in an increase in bitcoin demand. As a result, prominent cryptocurrencies such as Bitcoin and Ethereum have surged in value, adding to an increase in overall market value.
This article will look at the most recent Bitcoin price forecasts and trends as investors deal with the effects of inflation on the cryptocurrency market.
Despite the recent closures of bitcoin-friendly institutions, the cryptocurrency market surpassed $1.08 trillion for the first time in weeks. This increase was mostly driven by Bitcoin (BTC), which climbed about 10% to break above the $24,000 barrier, setting a two-week high. Ethereum (ETH) gained ground as well, climbing beyond $1,600.
The recent spike in Bitcoin’s value was sparked by US authorities’ support for Silicon Valley Bank and Signature Bank, which many investors and traders saw as a positive indication for the banking sector as a whole. As a result, market sentiment improved, and investors flocked to BTC, driving up its value.
Nonetheless, the recent increase in BTC’s value illustrates the growing general acceptance of cryptocurrencies. As more investors and institutions adopt digital assets, the bitcoin market may continue to face tremendous growth and volatility.
In addition, the European Union has suggested a customized blockchain including crucial personal identity and data information for the area. This blockchain protects user privacy while adhering to MiCA, the European Union’s forthcoming cryptocurrency regulatory framework.
This action is likely to increase investor confidence in the cryptocurrency business by proving that governments and regulatory bodies are prepared to assist the industry.
The US dollar struggled to gather traction on Tuesday, hitting a multi-week low on fears of a systemic crisis following the failure of a US technology-focused lender.
The present financial crisis has fueled anticipation that the Federal Reserve may pause its aggressive rate-hiking cycle.
As a result, market expectations predict that rate decreases are likely in June and for the remainder of the year.
It’s crucial to note that the Federal Reserve’s rate rises have played a big influence in boosting the US dollar’s strength, but expectations of how high rates may go have been tempered.
Looking forward, the critical US inflation data is likely to be revealed later on Tuesday, adding to the Fed’s quandary over whether to continue its path of rate rises to confront persistent price pressures or to defer further tightening of monetary policy to provide some relief to the banking sector.
On Tuesday, the BTC/USD pair was trading with a bullish bias around $25,750. On the plus side, Bitcoin will encounter immediate resistance at $26,700. Farther up, a break of the $26,700 barrier might bring up further buying opportunities to $27,400.
On the downside, Bitcoin’s immediate support level is $25,125, and a break below this level might open up further selling opportunity till the $23,750 level. If the price exceeds $25,225 today, it may be worth contemplating a purchasing move.
Check out Industry Talk’s carefully crafted list of the top 15 cryptocurrencies to look out for in 2023, as chosen by Cryptonews. The list is constantly updated with new ICO projects and cryptocurrencies, so check back periodically for the most recent additions.
