Cryptocurrencies have been on a rollercoaster ride in recent weeks, with prices fluctuating wildly and causing both excitement and anxiety among investors. However, despite the recent volatility, many experts believe that crypto prices are consolidating before a possible takeoff this week.
The global cryptocurrency market has managed to reverse its previous downward trend and reclaim its position above the $1.13 trillion mark. As of the time of writing, the global crypto market valuation stands at $1.13 trillion, reflecting a 1.67 percent increase in the past 24 hours.
Bitcoin has had an impressive year, and most of the cryptocurrency markets have followed suit. The initial surge in January 2023 was widespread, with almost all altcoins seeing gains. Some altcoins fail to regain rediscovered momentum pic.twitter.com/nNQHQvoNGN
— Caroline.Garcia (@Caroline147a) February 21, 2023
The world’s largest and most popular virtual currency, Bitcoin, saw a 2.9 percent increase in value to $25,054.9 as a result. Additionally, several major cryptocurrencies experienced slight gains, including Dogecoin (DOGE), Solana (SOL), Litecoin (LTC), and Ripple (XRP).
Bitcoin is still likely to continue to rise #BTC pic.twitter.com/8sL0M9DfwP
— Horizon Digital (@hzdcom) February 21, 2023
The recent upward trend in the cryptocurrency market may be attributed to the easing of macroeconomic conditions and a growing sense of optimism among investors. Additionally, new laws that favor cryptocurrency trading platforms have increased investor confidence in the crypto industry. As a result, there has been an increase in trust and demand for digital currencies among both retail and institutional investors.
#cryptonews: Hong Kong’s Securities and Futures Commission calls for public consultation over plans to allow licensed #cryptocurrency exchanges to serve retail investors.
— CoinMarketCap (@CoinMarketCap) February 21, 2023
Traders have been cautious about making strong bids ahead of the release of the minutes from the most recent Federal Reserve meeting, which could offer new insights into the central bank’s monetary policy. As a result, the market has been relatively quiet in anticipation of this event.
#FOMC minutes are due for release in ten days on 22nd Feb. Expect a hawkish tone which would be #Dollar positive and #Btc & #Crypto negative. This crypto rally looks as though it could be running out of steam for now. #Evai pic.twitter.com/QvZBiNe2Rz
— Matthew Dixon – CEO Evai (@mdtrade) February 20, 2023
The recent regulatory crackdown in the United States may have caused institutional investors to feel uneasy about the cryptocurrency market. As a result, there has been some hesitation among this group to invest in digital currencies until there is greater clarity and certainty around the regulatory landscape.
FOMC Minutes and Cryptocurrency Market
As previously noted, the global cryptocurrency market has been on the rise, but investors are showing caution in making large bids due to the upcoming release of important economic data, including the minutes from the US Federal Open Market Committee meeting held on February 1. The release of these minutes later this week is anticipated to provide fresh insights into the central bank’s monetary policy, and as a result, traders are exercising restraint in their investments.
U.S. core PCE
FOMC minutes this week pic.twitter.com/6hSays9AUj
— (@AlessioUrban) February 20, 2023
Investors have been eagerly anticipating the release of the minutes from the January Federal Open Market Committee meeting, as they may provide valuable insights into the state of the economy, the Federal Reserve’s plans to address potential inflationary pressures, and the potential size and timing of future interest rate increases. In addition, the minutes may include a risk assessment of the economic and financial landscape, providing an important context for maintaining economic growth.
Market participants are closely watching for indications of the committee’s policy outlook, and whether members are taking a more bullish or dovish stance. These details will be closely analyzed in the coming days, as they are likely to influence investor sentiment and market movements.
Understanding the Significance of the US Core PCE Price Index & Preliminary GDP Estimates
In addition to the release of the Federal Reserve meeting minutes, this week also sees the publication of the US Personal Consumption Expenditures Price Index, which is the central bank’s preferred measure of inflation. The data is expected to reveal that inflationary pressures remained elevated in January, a trend that could have significant implications for the broader economy and monetary policy. Investors will be closely monitoring these figures as they seek to gain a deeper understanding of the overall economic landscape.
⚠️Don't forget #FOMC meeting on Wednesday and US Core #PCE Price Index m/m on Friday!
— Farhat_ HN (@fhn_CRYPTO) February 19, 2023
The recent pause in the cryptocurrency market’s upward momentum has been attributed to a combination of factors, including concerns over rising inflation in the United States and hawkish comments from Federal Reserve officials regarding future interest rate hikes.
In addition to these concerns, traders are closely monitoring the release of the Preliminary Gross Domestic Product (GDP) estimate on February 23. The Bureau of Economic Analysis’s “advance” estimate revealed that real GDP grew at an annual rate of 2.9 percent in the fourth quarter of 2022, following a 3.2 percent increase in the third quarter.
The upcoming “second” estimate, which is expected to be more accurate, will be closely watched for any indications of economic strength or weakness.
Important news that may have an impact on the price of $BTC.
2/20 – New moon (Markets are typically volatile on New Moon and Full Moon days).
2/22- FOMC meeting minutes.
2/23- Prelim GDP Q/Q
2/24- Core PCE (Personal consumption expenditure ) Price Index m/m
— Blockchainedbb (@blockchainedbb) February 20, 2023
Gross Domestic Product (GDP) is a widely used measure of a country’s economic activity. It represents the total value of finished goods and services produced within a country’s borders. GDP is considered to be the most comprehensive indicator of a nation’s overall economic health, as it provides insight into changes in the country’s production, consumption, and investment patterns. Policymakers, investors, and other stakeholders rely heavily on GDP as a key metric for assessing the performance of an economy.
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