Arslan Butt
The global crypto market capitalization was $1.06 trillion on February 6, a 2.21% decrease from the previous day. In the previous 24 hours, the cryptocurrency market volume increased by 36.22% to $52.21 billion.
Furthermore, the price of the leading coin, BTC/USD, is currently $22,875.68, down 2.29% in the last 24 hours. ETH/USD is also down 2.20% to $1,631.42. Cryptocurrency prices have dropped today.
The primary reasons for the current low cryptocurrency prices are as follows.
NFP Harmed Sentiment
The US Bureau of Labor Statistics (BLS) released nonfarm payroll (NFP) data on February 3. In January, 517,000 new jobs were added, according to the report. It outperforms the 185,000-person target by a factor of 2.5.
Furthermore, the US unemployment rate in January was 3.4%, lower than the 3.6% predicted. The final significant factor in the job market is the year-over-year change in average hourly wages, which was 4.4% rather than the expected 4.9%.
Nonfarm Payrolls
Forecast: 175K
Previous: 223K#USD #NFP #nonfarmemplyment #Big #Movement #Friday pic.twitter.com/19joAtz569— Tasha (33.3%) (@MinenationsN) February 3, 2023
The jobs report is positive for the US dollar, but it threatens risk-on markets and the crypto market’s recent rise. As a result, it suggests that a short-term sell-off in cryptocurrencies is possible. Experts predicted that the report would show a slowdown in job growth in January, which would be great news for cryptocurrency investors. However, the report revealed the opposite, with BTC and ETH falling.
#NFP report has the potential to impact a wide range of currency pairs, but its most significant effect is typically seen on the US dollar #USD #XAUUSD #GOLD Be careful guys today I will be rock again and will kill the market with #experience and #accuracy for management pm me pic.twitter.com/WvBAb24f0f
— FOREX GOLD TRADING (@CEO_OFGOLD1) February 3, 2023
The NFP report harmed market sentiments, and the bullish outlook in cryptocurrency seen in recent days appears to be fading, as evidenced by the decline in leading coins.
What Does The Lack Of A Powell Pivot Mean For Markets?
The Federal Reserve raised interest rates by 25 basis points, or 0.25 percentage point, to 4.5%-4.75% on February 2. It met the expectations of market participants.
FED DECISION: The Federal Reserve votes to hike interest rates by 25 basis points. https://t.co/8x0mJm6ffW pic.twitter.com/JletIwjgnC
— CNBC (@CNBC) February 1, 2023
In addition, Jerome Powell, the chairman of the Federal Reserve, stated in a press conference that the deflationary economic process had begun. Powell acknowledged it, saying it was too soon to declare victory over inflation.
Jerome Powell sent a strong message, saying that while it is “gratifying” that inflation has begun to fall, the central bank is still far from changing its strategy or declaring victory.
"I would have preferred that they had done 50 basis points and then wait and see. They didn't. I suspect we have two more 25 basis point hikes ahead of us," says @elerianm. "My major concern is that they end up hikening into a weakening economy." pic.twitter.com/4og6lNEo8A
— Squawk Box (@SquawkCNBC) February 6, 2023
Furthermore, contrary to the predictions of many well-known economists, Jerome Powell stated that the Fed will not lower interest rates this year. Some market participants, according to Powell, believed inflation would fall faster than the Fed. It suggests that Powell is unlikely to change his tune anytime soon. As a result, the value of cryptocurrency is decreasing.
Weekend Profit-taking
Cryptocurrency is well-known for its volatility, and some experts believe that crashes usually happen on weekends. Weekend fluctuations, according to analysts, occur due to lower activity, margin trading, and other factors.
OPINION: According to Mike McGlone, the #cryptomarket sees widespread price drop, characterized by low prices, high volatility. Despite negativity, he sees potential new milestone for the world.
— Coingraph | News (@CoingraphNews) February 6, 2023
Cryptocurrency traders typically change their positions before the weekend begins. They close their trades on weekends to profit from the lower weekend activity. Because the weekend trading activity is so low, a trade size that would not have a significant impact on price movements during the week could have a significant impact with less volume.
As a result, the lower volume of trades is one factor contributing to weekend crypto volatility.
Best Cryptocurrency Coins To Buy During This Dip
Despite the current decline in the cryptocurrency market, buying alternative currencies while they are still in the presale phase is still profitable.
Meta Masters Guild (MEMAG)
MEMAG (Meta Masters Guild) is a brand-new mobile gaming guild. The network aims to improve the P2E ecosystem by providing enjoyable games that encourage users to stay on the platform.
Participants are not required to invest in monetary assets if they do not wish to. They only need to download the games, start playing, and reap the benefits right away. This is a fantastic recruiting tool for the network’s gaming community.
$3.1M raised by #MEMAGFAM!
❤️The outpouring of support has been truly remarkable Thank you so much!
Join the metaverse and be part of the family.⚔️
Get your $MEMAG today! ⬇️ https://t.co/SBqVjX5mWn #Presale #P2E #Metaverse #Tokens pic.twitter.com/iOftPHXnsh
— Meta Masters Guild (@MEMAGgames) February 6, 2023
The presale has already raised over $3 million and is now in stage 5, which will end in three days. The cost will rise from $0.019 to $0.021.
Fight Out (FGHT)
Fight Out (FHGT), a new cryptocurrency project launched this year, provides an opportunity to earn money using a cutting-edge Move-to-Earn (M2E) method. M2E is a revolutionary method that promotes and rewards physical activity.
The site’s current Fighting Fit theme generates interest in its cryptocurrency, FGHT. Because it drives the development of Web3, the platform has a lot of potential, especially for gamers and fitness enthusiasts.
Huge news #FightOutCrew!
We have now raised over $3.9M in our presale
Remember, you can now buy $FGHT with $USDT on both #Ethereum and #BinanceSmartChain!
Join now and get up to a 50% bonus! https://t.co/ZJslyfHI4t#DeFi #Crypto #CryptoPresale #ETH #BNB pic.twitter.com/TQWRyz1MqD
— Fight Out (@FightOut_) February 5, 2023
The price of $FGHT in stage 1 was $0.0166; it is now $0.01998. When the presale ends on March 31, the price will gradually rise to a maximum of 0.0333 USDT. Depending on the quantity purchased, investors can receive up to 50% bonus tokens.
Ripple (XRP)
Ripple (XRP) is a cryptocurrency that aims to make money transfers between financial institutions more efficient and less expensive. The trustless, quick, and low-cost nature of XRP transfers facilitates cross-border transactions. The crypto whale tracker Whale Alert reported four massive XRP transactions totaling $126 million on February 5.
The massive transfer included 205,500,000 XRP valued at $81.7 million sent between two unidentified wallets. It suggests that large investors bought and sold digital assets in large quantities.
Wow, crypto whales are on the move! In the last 24 hours, they have shifted over $126 million in XRP and The Sandbox (SAND). Check out where this massive crypto is headed now! #XRP #SAND #CryptoWhales #TheSandbox
— Q.E.D (@wizcap) February 6, 2023
On January 30, Ripple also released its Q4 2022 XRP Markets Report. It demonstrated that demand for its On-Demand Liquidity (ODL) offering remains strong, generating net XRP sales of $226.31 million in just a quarter.
Such accomplishments are especially noteworthy given that Ripple is still embroiled in a public legal battle with the SEC. The price of XRP/USD is $0.398177, down 3.04% in the last 24 hours.
Ethereum (ETH)
With its coin, Ether, Ethereum is an open-source, decentralized blockchain technology. In March 2023, an Ethereum hard fork called Shanghai is planned. It will include EIP-4895, which allows validators to withdraw the ETH they have staked.
Furthermore, the Ethereum network’s core development team has announced that the Shanghai and Capella forks will be available on the Zheijang testnet on February 7.
According to Tim Beiko, the core developer of ETH, the two new Shapella forks will go live at Epoch 1350. Following that will be testnets for Sepolia and Goerli. Before the fork goes live, Beiko advised validators to test Shapella by obtaining 33 ETH from the testnet’s faucet.
The price of ETH/USD is currently $1,629.06, down 2% in the last 24 hours. It is now gaining immediate support at $1,615 and a break of this level could expose the ETH price to the $1,590 mark. Further down, the $1,560 level serves as immediate support for Ethereum.
On the upside, the downward trendline and 50-day moving average are likely to act as immediate resistance near the $1,655 level. Today’s trading bias is bearish, so consider looking for a sell trade below $1,650.
Related news
Fight Out - Next 100x Move to Earn Crypto
- Backed by LBank Labs, Transak
- Earn Rewards for Working Out
- Level Up and Compete in the Metaverse
- Presale Live Now - $4M+ Raised
- Real-World Community, Gym Chain
This article was written for Business 2 Community by Arslan Butt.
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