With the release of U.S. inflation data, bitcoin investors and traders eagerly await its impact on the price of the cryptocurrency. Bitcoin has been outperforming since last Friday, rebounding nearly 30% from recent lows and setting a new 2023 record above $26,000. The cryptocurrency surge comes amid a banking crisis and widespread bank runs.
Apart from Bitcoin (BTC), Ethereum (ETH) has also gained in value and is currently trading above the $1,600 mark. This upward trend in the value of BTC and ETH has contributed to an overall increase in the value of most cryptocurrencies.
So, the future of crypto seems quite Optimistic, especially now that the U.S. authorities have expressed their willingness to support banks that accept crypto.
The move boosted investor confidence and restored trust in the financial sector, leading to a surge in demand for cryptocurrencies. As a result, the value of major cryptocurrencies such as Bitcoin and Ethereum has increased, contributing to an increase in the overall market value.
This article will examine the latest Bitcoin price predictions and trends as investors learn about the impact of inflation on the cryptocurrency market.
Support from U.S. Regulators Boosts BTC Value
The cryptocurrency market climbed above $1.08 trillion for the first time in weeks despite the recent closure of crypto-friendly banks. The surge was largely driven by bitcoin (BTC), which rose nearly 10 percent to break through the $24,000 mark and hit a two-week high. Ethereum (ETH) also saw gains, rising above $1,600.
U.S. regulators’ backing of Silicon Valley Bank and Signature Bank ignited a recent surge in BTC’s value, which many investors and traders viewed as a positive signal for the banking industry as a whole. As a result, market sentiment improved and investors flocked to BTC, causing its value to skyrocket.
However, the latest rise in the value of BTC highlights the growing mainstream adoption of the cryptocurrency. This suggests that the cryptocurrency market may continue to experience rapid growth and volatility as more investors and institutions embrace Crypto assets.
EU Proposes New Blockchain for Personal Identification
On the other hand, the European Union has proposed a dedicated blockchain containing personal identity and data information related to the region. The blockchain protects user privacy while complying with MiCA, the EU’s upcoming cryptocurrency regulatory framework.
The move is expected to boost investor confidence in the cryptocurrency space, showing that governments and regulators are willing to support the industry.
Dollar Falls, Boosts Bitcoin Amid Systemic Concerns
The dollar struggled to gain momentum and hit multi-week lows on Tuesday amid concerns that the collapse of a U.S. tech-focused bank could trigger a systemic crisis.
The current crisis in the banking sector has fueled speculation that the Fed may halt its aggressive upcycle.
As a result, market expectations suggest a 31% chance of a rate cut in June and the rest of the year.
It’s important to remember that the Fed’s rise has played a big role in driving the dollar stronger, but expectations for how far rates could climb have been tempered.
Looking ahead, a key U.S. inflation report due later on Tuesday presents the Fed with a dilemma: whether to keep rising to counter persistent price pressures, or hold off on further monetary tightening to allow the banking system to breathe a sigh of relief.
On Tuesday, the BTC/USD pair turned bullish at the $25,750 level. On the upside, bitcoin is facing immediate resistance at the $26,700 level. On the higher side, a break above the $26,700 level could open further buying up to $27,400.
Bitcoin price chart – Source: Tradingview
Below, immediate support for Bitcoin lies at $25,125, a break below which could open further selling up to the $23,750 level. If today’s price exceeds $25,225, it might be worth considering a buy trade.
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Check out Industry Talk’s curated list of the top 15 altcoins to watch in 2023, chosen by Cryptonews. The list is constantly updated with new ICO projects and altcoins, so make sure to revisit often for the latest updates.
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