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Bitcoin’s mid-week slip and slide has gripped everyone’s attention in the crypto world. The star kid of the crypto market – Bitcoin – was trading on wobbly grounds before the release of the FOMC minutes. However, it picked itself up after the drop and is now rallying above the $24,100 mark. Although the token is a bit shaken from these dramatic price swings, it has refused to sink any further for now. Is there going to be a reversal now or a pullback?
Let us go into an in-depth analysis to gain more insights into Bitcoin price behavior this week.
Bitcoin Price Pulls Back At $24,300
Bitcoin was trading at $24,345 at the time of writing this article.
Yesterday BTC’s price was around $24,120. This indicates a rise of around 1.2% in the last 24 hours. BTC’s price touched a low of around $23,500 and a high of around $24,500 over the past 24 hours. This indicates a fluctuation of around $1000 per BTC token.
The mid-week price swings of BTC have left its market capitalization at around $470.1 billion. Bitcoin’s 24-hour trading volume stands at around $895 million. The last 24 hours’ trading value is over the $3.6 billion mark, while the 24-hour transaction count for Bitcoin is around 278k.
FOMC Meeting Minutes Could Be a Hurdle to Bitcoin
Bitcoin was rallying high at the start of this week. It was going up from milestone to milestone and held its price at $24,500 for some time. There were speculations regarding Bitcoin breaching the resistance level at $25,000. There was a fair share of predictions that BTC was going into a full bullish movement.
However, BTC’s truth was far from this optimism. BTC’s price plummeted below $23,500. Since BTC is a massive part of the digital asset market, its dropping price caused the entire crypto market to dip by at least 3%. According to experts, this sudden downward price trend of Bitcoin was caused just before the FOMC minutes were set to be released. However, soon after the minute was released, Bitcoin price pulled back up again to $24,000.
As per the minutes of the FOMC meeting, the US economy is faring better than it was previously expected. There are clear indications that inflation is slowly dropping. However, the job sector in the economy has taken off. The country’s current employment rate is now the lowest it had been in the last 50 years. Its retail sector has also improved and is now on the rise again. This potentially means that the Fed is looking to increase the interest rates. This could have a detrimental effect on the cryptocurrency market.
BTC’s Behavior in the Last 4 Hours
Bitcoin’s 2023 bullish run after a long crypto winter was cut short. BTC’s price fell through from the levels of $25,000, not once but more than two times over the past two weeks.
In the last 4 hours alone, BTC’r price has moved up and down within the range of $24,550 to $24,350. The average price per token has been around $24,450. BTC’s price action is volatile at the moment.
If BTC’s last one-day price movement is considered, then it is clear that the price has fluctuated by around $1000 per token. Its price trend has been rugged and moved between the range of $24,600 to $23,600.
Crypto Space Stands to Face Vulnerability
Some industry experts believe that this fluctuation could be because of regulations in the cryptocurrency market. These last few weeks, the crypto industry has experienced a lacked of stable regulations. On top of that, there are speculations of strong scrutiny of the cryptocurrency market by the US Federal in the future. This puts the entire industry in a vulnerable state.
This could indicate a possibility of sudden developments which could cause the cryptocurrency market to fluctuate even more.
Scheduled 4th Halving of the Bitcoin
In between these bleak times for BTC, there is still a shimmer of light.
Bitcoin’s 4th halving is going to take place in early 2024.
Bitcoin was created in the year 2008 as a response to the economic crisis that affected the world in 2008-2009. To continue with its motive to curb inflation, it was mentioned in Bitcoin’s mining algorithm that every four years, the network will cut down its mining rewards. They aim to counteract inflation by maintaining a token scarcity in the market.
In the year 2012, the first halving event took place. As a result of which, BTC’s price per token rose and left the market capitalization at around $1 billion. After the second halving event in the year 2016, its price grew by 95%, and the price for one token stood at around $20,000. BTC’s third mining event during a global pandemic in the year 2020 took its price to a staggering height of $40,000.
It is clear that during all the previous halving events, the cryptocurrency’s price grew many folds and was able to create a market capitalization of over 450 billion.
Given the fourth halving event in the vicinity now, it is fair to assume that Bitcoin is looking to run into a bullish movement again in the coming year. Experts in the industry think that investors would want to buy the token this year to maximize their profit by selling next year during the bull run. Thus, if more demand is created now, then BTC’s price could rise again very soon.
Final Words on Bitcoin
In recent months, the cryptocurrency market has garnered more interest. This could be because the beginning of 2023 started as a rebound for many cryptocurrencies from last year’s slump. The upward rally for a strong contender like Bitcoin gave a lot of hope to this global industry.
The recent fluctuations of Bitcoin took everyone by surprise. However, let’s not forget that the asset market relies on these fluctuations to manage demand and supply. If Bitcoin’s price goes down from here, the buyers will surely push its price back up again.
It is challenging to accurately assess such a vulnerable market which sees dramatic movements daily. The current market volatility for Bitcoin is medium at below 4%. The market sentiment is heavily neutral. In this situation, investors are advised to wait out and see if BTC continues to recover in the next 24 hours. If it does, it could potentially indicate that the price drop was a pullback on BTC’s way to the top again.
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