Bitcoin Prices and Ethereum Prediction: The Factors that Could Push BTC and Ethereum To New Heights
Bitcoin and Ethereum are two of the most sought-after digital assets worldwide. Their prices have seen an enormous rise since their inception. It is crucial to understand the factors that could drive Bitcoin and Ethereum to new heights as more people become interested.
This article will cover the many factors that can affect the prices these popular digital currencies. It also includes technical analysis.
The crypto market cap increased by 1.45% to $1.71 trillion in the last 24 hours while trading volume fell by 7.81% to $79.382billion.
DeFi had a market share of 0.01% in 24-hour cryptocurrency trading volume, with a total value of $9.84billion. Stablecoins accounted for 99.9% at $79.82 Billion, while Bitcoin accounted for 41.65% of the market at the time. Bitcoin trades at $37.527.19 right now.
These are the Factors that Could Push BTC and Ethereum To New Heights
Crypto investors will be closely monitoring the US Fed Fund rate and US Nonfarm Payroll figures over the coming week.
US Fed Fund Rate & FOMC
The week of February 1st is a busy one for central banks. The Federal Open Market Committee, Bank of England (BOE), European Central Bank (ECB), and Bank of England (BOE) gather to announce their respective Interest rate Decisions.
CME FedWatch Tool predicts that the Federal Open Market Committee will raise interest rates by 25 basis point and set the federal funds rate target at 4.75%.
It is difficult to decide whether central banks will increase their rate of interest. Retail sales data and manufacturing data have shown that the economy has performed below expectations since December. Inflation components are also weaker than normal.
The average hourly earnings saw a significant decline, while the Consumer Price Index for December (CPI), was at its lowest level since May 2020. Over the past month, central bankers have been very active and many of them predict a 0.25% rate increase this week and possibly another 0.25 percent in March.
It is possible that the FOMC could signal a rate increase of 0.25% this week but decides to pause to look at the cumulative hikes similar in nature to the Bank of Canada.
The rate of return for cryptocurrency will have an important impact on its price movement on the market.
US Nonfarm Payroll Statistics
Nonfarm payroll data in the US gives an indication of strength of the economy. It tracks total employment, not just the farm sector. These data are used by traders to decide when to purchase or sell cryptocurrencies and digital assets. The release of these data can make the crypto market volatile. Figures of the US NFP Next week.
The US economy added 223K jobs in the month of December 2022 after a downwardly adjusted 256K increase in November. This was the lowest level since December 2020. Payroll employment increased by 4.5 million in 2022. This is an average of 325 thousand per month. That compares to 562 thousand in 2021, and 168 thousand in 2019.
After the shock of the epidemic, the labor market is slowly returning to normal. The report shows that although hiring is still strong, it is slowly slowing down.
Fed projections predict that the labor market will remain tight through 2023. However, job creation will slow down and the unemployment rate will rise to 4.6%.
Many large technology companies have announced significant layoffs amid rising interest rates and slowing consumer demand.
Bitcoin Price
The current Bitcoin price is $23,223 and its 24-hour trading volume of $17 billion. CoinMarketCap estimates that it is worth $447 billion, and that it occupies the number 1 spot. The circulating supply is 19,275,881 BTC coin with a maximum of 21 million BTC coin.
As the BTC/USD trades in a narrow range of $22,900 to $23,400, the technical outlook for Bitcoin has not changed much. The market could show a bearish trend if Bitcoin’s value falls below $22,900. This could potentially lead to a plunge as low as $22,400.
We may see a more bearish trend if it falls to $21,750.
Bitcoin’s current resistance level is $23,250 at the moment. Bitcoin could reach $23,250 or even $25,000. If it can surpass this point, it may go higher.
Buy Bitcoin Now
Ethereum Price
Ethereum currently trades at $1,593 and has seen a 0.50% rise in trading volume over the last 24 hours. It is ranked 2nd on CoinMarketCap with a market capitalization of $195 Billion.
In the span of just four hours, ETH/USD traded choppyly, holding at $1,600. This level is likely to increase Ethereum’s downward pressure. Ethereum also formed a symmetrical triangular pattern that indicates indecision among investors.
Support is located at $1,560 on the lower side. A break below this level could see ETH move toward $1,500. A bullish breakout above $1,625 could push ETH towards the $1,680 level.
Buy Ethereum Now
Bitcoin Alternatives
CryptoNews Industry Talk has evaluated the top 15 cryptocurrency for 2023. If you are looking for an investment opportunity with better potential, there are many other projects that you should consider.
Each week, new altcoins are added to this list.
Disclaimer: The Industry Talk section contains insights from crypto industry players, and is not part of Cryptonews.com’s editorial content.