Bitcoin and Ethereum On The Rise: What to Watch For After This Week's 20% Gains
Although the global market cap of cryptocurrencies has seen a slight dip, Bitcoin (BTC) and Ethereum (ETH) have still held strong at around $21,000 and $1,500 respectively. This has enabled them to maintain their positive momentum.
Bitcoin appears to be establishing strong support around the $21,000 level and may soon reach beyond its current $23,000 resistance. The crypto winter might finally be coming to an end as the market increasingly exhibits signs of a budding bull run.
The cryptocurrency market has seen a 1% increase in the past day and is now worth $1.02 trillion. This is due to encouraging macroeconomic indicators such as the improvement of US inflation statistics and forecasts that the global recession will end in 2022.
However, the upward trend of Bitcoin values can be attributed to numerous positive macroeconomic developments. These include new monetary policies, whales buying BTC, increasing Bitcoin mining difficulty, and the 2024 'halving'.
The cryptocurrency market continues to offer strong signs of an impending bull run. This is because the Consumer Price Index dropped 0.1% month-on-month in December, giving traders hope that the Federal Reserve might reverse or soften its rate hike plan.
There is a probability that the central banks will begin to slow the pace of rate hikes as soon as possible this year. This was seen as one of the key factors that underpinned digital assets.
The "halving" of Bitcoin is another factor that is likely to excite cryptocurrency traders. Some investors believe that halving, or lowering bitcoin rewards to miners by half, will increase the price of bitcoin since it will restrict supply.
However, the halving is expected to occur between March and May of 2024.
The broad-based US
Read more on cryptonews.com
