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The most recent inflation figures on Tuesday appeared to show that the U.S. central bank was now succeeding in its fight against inflation, which delighted cryptocurrency investors. This caused Bitcoin’s price to be boosted to a decent level which has created a bullish sentiment in the market in the short term.
Recently, Bitcoin was traded for over $16,700, up more than 2% from the previous day. The biggest cryptocurrency has been rising since Monday, despite the growing negative effects of the liquidity issue at the crypto exchange FTX and its request for bankruptcy protection under Chapter 11. Because of its “substantial exposure” to FTX, cryptocurrency lender BlockFi is reportedly ready to file for bankruptcy, according to The Wall Street Journal.
Although Bitcoin has shown resilience at the moment, it is difficult to believe that investors are willing to test the waters unless we are made fully aware of the entire contagion risk connected to FTX. However, he cautioned that if other exchanges or cryptocurrency organizations halt deposits or restrict activity, that would probably bring back the pressure on cryptocurrencies. This was written by Edward Moya, a senior financial analyst at foreign exchange marketplace maker Oanda.
Current Market scenario
Recently, the price of Ether was over $1,250, an increase of more than 3% from Monday at the same time. Other prominent cryptocurrencies saw much of Tuesday in green due to the SRM, CEL, and FTT tokens of struggling projects Serum, Celsius, and FTX climbing significantly to double digits during the preceding 24 hours. Despite this, FTT was recently selling at $1.80, a much lower price than its nearly $36 high from earlier this year.
SRM fell more than 72% over the weekend when DeFi protocols in the Solana ecosystem started cutting off their connections to Serum’s on-chain exchange out of anxiety that they didn’t know who had the power, a worry fuelled by a Friday FTX attack. Before the Binance deal was made public, Sam Bankman Fried, the CEO of FTX, sought the help of financiers and other investors to prevent the company from going into a serious liquidity crisis.
The market capitalization-weighted outcome of the technology platform market as measured by the CoinDesk Market Indicator, a broad-based index, was up roughly 1%.
Bitcoin Price was Boosted by around 3%
Bitcoin is now selling at $16,798 and has a $37 billion 24-hour trading volume. Within the past 24 hours, Bitcoin has climbed by 0.20%. With a real-time market capitalization of $322 billion, CoinMarketCap is presently ranked top. 19,206,950 BTC coins are now in circulation, with a maximum availability of 21,000,000 BTC coins.
Future price movement will be determined by a breakout from the huge trading range that bitcoin is now consolidating in between $18,000 and $16,000. In the last four hours, Bitcoin has finished a 38.2% Fibonacci breakdown at the $18,100 level, and it is presently steady.
An $18,100 crossing was accomplished. The $19,350 61.8% Fibonacci level may be vulnerable to the price of Bitcoin at this point. Bitcoin may drop below $15,965 if it is unable to pass thru the 38.2% Fibonacci retracement mark of $18,250.
The 50-day rolling average and RSI are still in the selling zone, but the MACD, the largest technical indicator, has moved into the buying zone. If the final candles close below $18,000, BTC may begin to deteriorate, finding support between $16,000 and $15,850.
Exchange outflows might not be what they once were
Investors’ usage of BTC and ETH exchange balances has changed since the FTX meltdown. As coins are moved to exchanges to prepare them for sale, increases in the exchange holdings for BTC and ETH sometimes indicate pessimistic sentiment.
However, comparing current values to those that existed before November 2022 can mislead investors. The outflows may now be indicating something quite different: that consumers don’t want their coins to be stored on the exchange as a safety measure against the possibility of another transaction run like the one that recently occurred at FTX.
Conclusion
Equity markets increased marginally as a result of lower-than-expected provider price index (PPI) statistics for October, which showed that the monetary policies of the U.S. central bank were containing inflation. The S&P 500 and Dow Jones Industrial Average (DJIA), which both have a sizable tech component, increased by 0.8% and 0.1%, respectively, while the tech-heavy Nasdaq increased by 1.4%.
A potential bankruptcy of BlockFi might be the next major test for the crypto markets, cautioned Oanda’s Moya. The lender admitted on Monday that, in contrast to deposits on the site, it also caused them to fall, according to Moya. Despite their recent statement that the majority of their funds are held at the defunct cryptocurrency exchange FTX, “contagion from FTX was generally predicted to affect BlockFi.”
As of now, it may be wise to invest in high-potential cryptos with excellent fundamentals in order to ensure handsome profits. A great option is to consider presale tokens like RobotEra, which has already been gaining massive popularity in the crypto space. The project has already amassed a massive community and may grow in demand even further, thanks to this small green movement by Bitcoin.
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