Can Bitcoin Breakthrough $25,000?
Benzinga informs us about major Bitcoin (BTC) trades that occurred on green Tuesday shortly after Jerome Powell announced the disinflationary process taking place in the economy. Powell has aided BTC to rise 1.2% in the past 24 hours and over $23,000, but Benzinga has also noted that the coin is seeing resistance at $25,000. BTC’s price is currently $23,082, and analysts think it’s very possible that we might see it shift into higher price zones in the near future, potentially between $25,000 and $27,000.
On the other hand, The Fed intends to continue its monetary policy for the purpose of getting inflation under control in the US. Last year, they raised their rates a total of seven times which made investments seem riskier and, therefore, less appealing to the public. BTC has seen drops in response to Powell’s recent announcement regarding their decision to raise interest rates by 25 basis points. However, Bitcoin could face a bullish momentum if the labor market cools off by next week. Bitcoin’s decline has affected other important tokens as well. Out of these, Solana’s value has taken the biggest blow, with a drop of 10% in the last week of January, trading at $23.57. “The process of getting inflation down has begun, and it’s begun in the goods sector, which is about a quarter of our economy,” said Powell. “But it has a long way to go. These are the very early stages,” Powell said.
Analysts expect a bullish trend if the Fed signals it will slow down interest rate hikes along with Bitcoin’s upcoming block reward halving in 2024. The January bull market was led by Bitcoin, and when its value fell, it took the rest of the market with it. According to CoinGecko, BTC has dropped 4.4% in 24 hours and is now trading for $22,787.
Will the Shanghai Upgrade Save ETH?
Ethereum surged by 2.6% this year and has, in effect, almost hit a trading price of $1,700. The coin also found support from the 21-day simple moving average which has created a higher low at around 1,600. This suggests that ETH is sure to surge from the mid $1,550 zone. Overall, the coin yielded 40.4 gains for holders since the beginning of January.
We might have expected a negative impact on Ethereum with the rising gas fees, but it seems that has not been the case. This is because the coin has seen increasing demand on account of the Shanghai Upgrade development, scheduled to take place in March, where staked ETH tokens are going to be unlocked and which will spike the number of ETH holders. This might make now a good time to consider investing in Ethereum, as analysts anticipate a large price rally. However, will the Fed’s decision to increase interest rates interfere with this coin’s potential? ETH has already lost almost 6% of its value.
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