The most well-known cryptocurrency, bitcoin, continues to be the most widely used digital currency globally. A long upward rally has seen the currency rise to a high of $21,000, representing the currency an impressive 12% increase in 24 hours. The second largest cryptocurrency, Ethereum, has also seen positive movements, rising above $1,550.
It has been a big year already for the crypto market, seeing a positive rise in bitcoin trading along with other major tokens in the market. Bitcoin and Ethereum have seen close to a 25% increase, while other major coins, such as Dogecoin, Ripple, and Litecoin, have also seen green movements.
These changes in the market are looking great for traders; the falling inflation and lowered interest rates could be one of the contributing factors to this price increase. Here is everything we know about the two most popular digital currencies and what we expect to see in 2023.
Positive Crypto Market
The global crypto market has started seeing some positive movements compared to previous months, steadily growing and gaining momentum to break through the $1 trillion mark. Due to this, we have seen growth in currencies such as the most popular types, Bitcoin and Ethereum.
A decline in inflation has been seen (surprising with the current economic events happening in Ukraine) from December 2022 through the data from the Consumer Price Index. December was considered a negative month regarding deflation. It has been projected by the market that the Federal Reserve is beginning to slow its rates across the next six months with the potential to lower rates further to avoid inflation. Due to these results, interest rates are looking to fall, positively affecting stock prices as they begin to rise.
Another sector supporting the cryptocurrency market has been a statement by the FTX liquidators. This company has recovered $5 billion in assets, with a lot made up of cash and cryptocurrencies. Mary Cilia, CEO of FTX, had previously claimed that the company could reclaim assets by April 2023. Still, future developments have been announced, and the court has ordered that these assets are reclaimed by March 15, 2023. With the news of this fast recovery, the benefits for the crypto industry and FTX users are moving positively.
Binance Pool
Bitcoin miners and digital infrastructure providers now have an open platform to push cloud mining partner programs using Binance pool. A recent blog post made an announcement from Binance about this new program. Binance Pool customers are promised to gain many more product perks and options whilst also delivering providers and miners digital infrastructure inclusive program incentives. Everyone regarding this announcement looks to see positive results due to the decision.
Weak US Dollar
Cryptocurrency prices such as Bitcoin and Ethereum have also been boosted due to the current demise of the US dollar value. The US dollar has seen its lowest level in close to seven months with a failure to stop this decline. Data has shown that inflation had fallen in December for the first time in nearly three years, sparking debate on the Federal Reserve postponing rate hikes.
Bitcoin Price
The current trading price of Bitcoin is around $21,000, with a current 24-hour trading volume of $40 billion. Bitcoin is on a rise and has already broken through $20,500, acting as immediate support. A trading milestone has been set of $23,000 due to the bullish breakout of this magnitude, opening a wider space for the $21,000 uptrend. The most complete support level for Bitcoin sits around $20,500, or $20,000. At the same time, the MACD and RSI indicators have stepped into a territory of overbought. Due to this, it is important to keep an eye on $21,500 as a failure of a target breakthrough, as this level could result in negative results surrounding the BTC price movement.
Ethereum Price
The current Ethereum price sits at around $1,559, with a 24-hour trading volume of close to $14 billion. The current link between ETH/USD pairings has recently broken the $1,500 key resistance level ceiling with predictions to reach the $1,650 barrier level. The current bullish trend is strong, making a great time to start buying, but there is potential for the ETH price to find support around the $1,500 level, but this bearish break could result in additional selling by current investors, selling to $1,400. If the inflated barrier level predictions reach $1,650, there is a strong chance that ETH could continue to rise to a resistance level of $1,700.