Bitcoin Prices and Ethereum Prediction; The Factors That Could Propel BTC and ETH To New Heights

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Bit­coin and Ethereum have been two of the most pop­u­lar dig­i­tal assets in the world, with their prices hav­ing seen a huge surge since their incep­tion. As more and more peo­ple become inter­est­ed in cryp­tocur­ren­cies, it is impor­tant to under­stand what fac­tors could pro­pel Bit­coin and Ethereum to new heights. 

This arti­cle will dis­cuss the var­i­ous fac­tors that could affect the prices of these two pop­u­lar dig­i­tal cur­ren­cies, includ­ing fun­da­men­tal and tech­ni­cal analysis. 

In the past 24 hours, the cryp­to mar­ket cap has increased by 1.45% to a stag­ger­ing $1.71 tril­lion while trad­ing vol­ume has gone down by 7.81%, amount­ing to $79.382 billion.

DeFi’s mar­ket share in the 24-hour cryp­tocur­ren­cy trad­ing vol­ume was around 0.01% with a total of $9.84 bil­lion. How­ev­er, sta­ble­coins rep­re­sent­ed 99.99% at $79.82 bil­lion and Bit­coin had a 41.65% mar­ket dom­i­nance at the time of writ­ing, trad­ing at $37,527.19 today.

The Factors That Could Propel BTC and ETH To New Heights

In the upcom­ing week, cryp­to investors will watch the US Fed Fund Rate and US Non­farm Pay­roll fig­ures intently.

US Fed Fund Rate & FOMC

Feb­ru­ary 1st marks a hec­tic week for cen­tral banks as the Fed­er­al Open Mar­ket Com­mit­tee (FOMC), Bank of Eng­land (BOE), and Euro­pean Cen­tral Bank (ECB) all gath­er to announce their respec­tive Inter­est Rate Decisions.

The CME Fed­Watch Tool pre­dicts a high prob­a­bil­i­ty (98%) of the Fed­er­al Open Mar­ket Com­mit­tee hik­ing inter­est rates by 25 basis points and set­ting the tar­get range for the fed­er­al funds rate at 4.75%.

The dif­fi­cult deci­sion to make is whether the cen­tral banks will deliv­er a dovish or less hawk­ish rate hike. Eco­nom­ic per­for­mance since Decem­ber has been below expec­ta­tions as seen through retail sales and man­u­fac­tur­ing data. Fur­ther­more, infla­tion com­po­nents have been weak­er than usual.

Aver­age Hourly Earn­ings expe­ri­enced a con­sid­er­able decrease while the Con­sumer Price Index (CPI) for Decem­ber marked its first neg­a­tive read­ing since May 2020. Cen­tral bankers have been active over the past month and most of them are pre­dict­ing a 0.25% rate hike this week and pos­si­bly anoth­er 0.25% increase in March.

Is it pos­si­ble that the FOMC could indi­cate a 0.25% rate rise this week, yet decide to take a pause to review the cumu­la­tive hikes sim­i­lar to what the Bank of Cana­da did?

The deci­sion on the rate of returns for cryp­tocur­ren­cies will have a sig­nif­i­cant impact on their price move­ment in the market.

US Nonfarm Payroll Figures

The US non­farm pay­roll fig­ures pro­vide an indi­ca­tion of the strength of the econ­o­my by track­ing total employ­ment out­side the farm sec­tor. This data is used by traders to make deci­sions about when to buy or sell cryp­tocur­ren­cies and oth­er dig­i­tal assets. The cur­rent chop­py ses­sion in the cryp­to mar­ket can shift to a volatile mar­ket upon the release of US NFP fig­ures next week. 

After a down­ward­ly cor­rect­ed 256K increase in Novem­ber and top­ping mar­ket fore­casts of 200K, the US econ­o­my added 223K jobs in Decem­ber 2022, the least since Decem­ber 2020. Increas­es in pay­roll employ­ment totaled 4.5 mil­lion in 2022, or an aver­age of 375 thou­sand per month, com­pared to 562 thou­sand in 2021 and 168 thou­sand in 2019.

The labor mar­ket is grad­u­al­ly return­ing to nor­mal fol­low­ing the shock of the epi­dem­ic, and the report shows that hir­ing is slow­ing down, albeit it is still strong.

Accord­ing to Fed pro­jec­tions, the labor mar­ket will con­tin­ue to be tight in 2023, but job cre­ation will stall and the unem­ploy­ment rate will climb to 4.6%.

Amid ris­ing inter­est rates, slug­gish con­sumer demand, and a world­wide eco­nom­ic slow­down, many large tech­nol­o­gy cor­po­ra­tions have already announced major layoffs.

Bitcoin Price 

As of today, the cur­rent Bit­coin price is around $23,223 & its 24-hour trad­ing vol­ume is around $17 bil­lion. Accord­ing to Coin­Mar­ket­Cap, it has a mar­ket cap of $447 bil­lion and occu­pies the 1st spot. There’s a cir­cu­lat­ing sup­ply of 19,275,881 BTC coins with a max­i­mum sup­ply of 21 mil­lion BTC coins.

The tech­ni­cal out­look of Bit­coin has not changed sig­nif­i­cant­ly recent­ly as the BTC/USD con­tin­ues to trade in a nar­row range between $22,900 and $23,400. If Bit­coin’s worth dips below $22,900, the mar­ket can be expect­ed to take on a bear­ish trend, poten­tial­ly sink­ing as far down as $22,400. 

If it con­tin­ues to fall to $21,750, we may see an even more bear­ish trend.

Bit­coin Price Chart — Source: Tradingview

At the moment, Bit­coin’s imme­di­ate resis­tance lev­el is set at $23,250. If it man­ages to sur­pass that point, the cryp­tocur­ren­cy may reach a high of $23,900 and even $25,150.

Buy BTC Now

Ethereum Price 

Ethereum is cur­rent­ly trad­ing at $1,593 and has expe­ri­enced a 0.50% increase in the past 24 hours with a total trad­ing vol­ume of $6.8 bil­lion. It’s ranked 2nd on Coin­Mar­ket­Cap, with a live mar­ket cap­i­tal­iza­tion of $195 billion.

Over the course of four hours, ETH/USD has been trad­ing chop­pi­ly, hold­ing just below $1,600. Clos­ing can­dles under this lev­el has strong odds of increas­ing down­ward pres­sure on Ethereum. Addi­tion­al­ly, Ethereum has formed a sym­met­ri­cal tri­an­gle pat­tern, which is indi­cat­ing inde­ci­sion among investors.

Ethereum Price Chart — Source: Tradingview

On the low­er side, sup­port is present at $1,560, and a break below this lev­el could lead ETH toward $1,500. Con­verse­ly, a bull­ish break above the $1,625 lev­el could send ETH toward the $1,680 mark.

Buy ETH Now

Bitcoin Alternatives

The top 15 cryp­tocur­ren­cies for 2023 have been assessed by Cryp­toNews Indus­try Talk. There are lots of alter­na­tive projects worth inves­ti­gat­ing if you’re search­ing for a bet­ter prospec­tive invest­ment opportunity. 

New alt­coins and ICO projects are added to the list on a week­ly basis.

Dis­claimer: The Indus­try Talk sec­tion fea­tures insights by cryp­to indus­try play­ers and is not a part of the edi­to­r­i­al con­tent of Cryptonews.com.

Find The Best Price to Buy/Sell Cryptocurrency

Cryp­tocur­ren­cy Price Track­er — Source: Cryp­tonews



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