The cryptocurrency market has been on a bullish run lately, with both Bitcoin and Ethereum prices holding on to most of their rally gains. Bitcoin has been able to maintain its momentum, showing potential to reach the $30k mark, while Ethereum has been surging ahead, nearing the $2k threshold. This positive trend has left many wondering if we will see Bitcoin and Ethereum hitting the significant price milestones of $30k and $2k soon.
Let us delve deeper to examine the fundamental and technical aspects of the market.
Bitcoin and Ethereum Prices; Quick Fundamental Outlook
Even though the economic data of the United States hinted at the likelihood of the Federal Reserve increasing interest rates more aggressively, Bitcoin (BTC) – the world’s largest cryptocurrency – has gained momentum throughout the day and surged above the $24,000 level. Simultaneously, Ethereum – the second-largest cryptocurrency – has experienced considerable traction and is currently trading above the $1,700 threshold.
$BTC is back below the $24k mark today, currently down 3.67% and sitting at $23,996. https://t.co/59QGNDUsh8 pic.twitter.com/Iu8y8xTZa7
— Yahoo Finance Plus (@yfinanceplus) February 17, 2023
Despite the recent rumors and tighter regulatory measures surrounding the cryptocurrency market, investors’ interest in digital assets remains unhampered. This is due to several favorable developments regarding the acceptance of Bitcoin in the industry.
Conversely, investors have reacted positively to the 5.6% year-on-year hike in the US Consumer Price Index reported on February 14, as well as the 3% monthly rise in retail sales on February 15.
In addition, the US dollar’s momentum has started to dwindle and it faced a slight dip as the market underwent a readjustment phase in anticipation of signals from the Federal Reserve on how it planned to tackle the ongoing high inflation. The negative impact on the US dollar was regarded as yet another significant factor that positively affected the BTC prices.
The U.S. dollar edged lower in early European trade Thursday, handing back some of the previous session’s gains after better-than-expected U.S. retail sales pointed to more interest rate hikes by the Federal Reserve. pic.twitter.com/rCFpbJtaUH
— Parkmoneyfx (@parkmoneyfx) February 16, 2023
Crypto Market Mood
The worldwide cryptocurrency industry has witnessed a surge in popularity, with its current valuation surpassing $1.12 trillion. A large majority of cryptocurrencies have experienced price appreciation throughout the day, possibly influenced by the January US Consumer Price Index (CPI) figures.
Moreover, the reduced regulatory concerns within the cryptocurrency market, coupled with recent developments in the industry, have had a considerable impact on the cryptocurrency market’s positive trend.
The expansion of non-fungible tokens (NFTs) and decentralized finance (DeFi) has also propelled the value of cryptocurrencies to greater heights.
The rise of decentralized finance (DeFi) and non-fungible tokens (NFTs) has also given a boost to the crypto market. Many investors are excited about the potential of these new technologies and the opportunities they present.
— Samu.bnb (@samurainfts) February 17, 2023
On the other hand, the gains witnessed in the crypto market could potentially be short-lived, as the economic data from the United States has prompted speculation that the Federal Reserve may adopt a more aggressive stance with interest rate hikes in an attempt to address the issue of persistent inflation.
Wall St drops on mounting worries about Fed staying hawkish https://t.co/RmO9JLZRrI pic.twitter.com/VFMjgsa6Og
— Reuters (@Reuters) February 17, 2023
Export prices saw a year-on-year hike of 0.8%, surpassing the predicted 0.2% drop. Moreover, reports released on Thursday showed an increase in monthly producer prices in January and a decline in the number of jobless benefits applications from the previous week, which was lower than what was initially anticipated.
El Salvador to Open Bitcoin Embassy in the United States
El Salvador is set to become the first country in the world to establish a “Bitcoin Embassy” in the United States. As the most widely used cryptocurrency globally, Bitcoin (BTC) has garnered a significant amount of attention, and El Salvador made history by recognizing it as a legitimate payment method in 2021. The nation is currently expanding its approach towards Bitcoin through a new partnership with the Texas government.
El Salvador plans to open a "Bitcoin Embassy" in Texas
1/ El Salvador's Ambassador to the US @MilenaMayorga tweeted they're in discussions to open a bitcoin embassy in "new ally" Texas
2/ Goal is to aid "expansion of commercial and economic exchange projects"
3/ In Oct… https://t.co/7QU9S147by pic.twitter.com/1orPFliGjU
— Milk Road (@MilkRoadDaily) February 16, 2023
Through the intergovernmental partnership, a new initiative has been announced to launch a Bitcoin Embassy, which will serve as the representative office of El Salvador in Texas. The goal of this venture is to foster collaboration and create innovative approaches to promote the adoption of Bitcoin. Milena Mayorga, the Salvadoran ambassador to the United States, made the announcement of this project via Twitter on February 14. As a result, this news was regarded as one of the primary factors that had a positive impact on BTC prices.
Impact of the Upcoming Shanghai Upgrade on Ethereum Network
The Ethereum Shanghai hard fork is expected to take place in March 2023, and its implementation will mark the network’s complete transition to a proof-of-stake (PoS) consensus mechanism, which commenced with the Merge on September 15, 2022. Once Shanghai is implemented, the previously locked Ether will gradually become liquid again, but this will not happen until December 2020.
With all eyes on the upcoming Shanghai Upgrade, Liquidity Staking Derivatives could be a bullish trip for the next crypto cycle. Join our Space to discuss who could be the infrastructure play!
Reserve at https://t.co/ny6i3hWxee
⏰8pm, Feb 19 (Eastern Time) pic.twitter.com/DD0uVb8hcH
— OKX Web3 (NFT & Wallet & DeFi) (@okxweb3) February 18, 2023
Based on the on-chain Etherscan statistics, the PoS staking protocol presently has approximately 16.6 million ETH locked up, which translates to a value of $28 billion as of February 16, 2023. The transition from the proof-of-work (PoW) consensus mechanism to the proof-of-stake (PoS) protocol has enabled Ethereum to achieve its original objective of making Ether’s supply deflationary.
Since the Merge took place, approximately 24,800 ETH have been burned within 154 days, which means that the token has become deflationary at a rate of 0.05% annually.
“Innovation distinguishes between a leader and a follower.”
-Michael @Saylor on #Ethereum
It's no secret that #Ethereum has been leading the way in innovation in the #blockchain space, and the upcoming #Shanghai upgrade is just another example of that. pic.twitter.com/L2Rl4dlNOa
— CryptoD₿S (@DbsCrypto) February 17, 2023
With the total quantity of Ether being 120 million, slightly over 10% of that amount is expected to be unlocked on February 16, which will trigger yield benefits commencing from the Shanghai upgrade.
Bitcoin Price Analysis: Technical Perspective
At present, Bitcoin is being traded at $24,600, with a 24-hour trading volume of $38 billion and a 3% increase in the past 24 hours. Following a slight decline, Bitcoin found support close to the 50% Fibonacci retracement level at $23,325, and it has since rebounded, initiating an upward trend. The recent candle closure above this level has spurred a buying trend in Bitcoin, contributing to the bullish sentiment that currently prevails in the market.
Looking forward, the next resistance level for Bitcoin is anticipated to be at $25,300, and if a bullish crossover occurs above this level, it could drive the BTC price even higher to $26,000.
Bitcoin Price Chart – Source: Tradingview
The 50-day moving average is further increasing the probability of a consistent upward trend in Bitcoin. For investors looking to leverage this trend, it may be wise to monitor the $24,250 level as a potential entry point to consider taking a long position in Bitcoin.
Ethereum Price Analysis: Technical Perspective
Ethereum is presently trading at $1,700, with a 24-hour trading volume of $5.5 billion and a 0.10% increase in the past 24 hours. On Sunday, the ETH/USD pair breached the key resistance level of $1,670, indicating a bullish breakout that could result in additional buying opportunities, potentially up to the $1,750 mark.
If the ETH price successfully breaks out above the $1,750 level, it could potentially push higher toward the $1,825 and $1,875 levels. Conversely, the immediate support for Ethereum rests at the $1,670 level, and a breakdown below $1,600 could trigger a sell-off that may push the price down toward the $1,550 level.
Ethereum Price Chart – Source: Tradingview
In general, investors are encouraged to keep a close eye on the $1,670 level for possible buying opportunities, while remaining vigilant for any potential breakouts or breakdowns.
Top Crypto Alternatives to Bitcoin for Today’s Investments
In addition to BTC and ETH, there are several altcoins in the market that show significant potential. The B2C team has conducted a thorough analysis and compiled a list of the top cryptocurrencies to watch for in 2023.
See Best Crypto to Invest in 2023
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