Bitcoin continues to trade in a tight range of $18,000 to $25,000, giving investors an idea of where the price is headed next. The crypto market has been plagued by a number of issues ranging from collapsed projects to bankruptcies.
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value of Bitcoin The stock fell below $23,000 over the weekend as investors digested the latest US jobs numbers and looked to a batch of Federal Reserve member speeches.
After breaking above $24,000 on Thursday, bitcoin fell to $22,655 on Monday morning, its lowest level since January 31, according to Coin Metrics. It was last trading up less than 1% at $23,039.37.
For the month, bitcoin is down 0.4%. However, it’s still up 39.1% for 2023.
Meanwhile, Ether dropped as low as $1,610.21 on Monday. It was last up 1.7% at $1,646.12.
Bitcoin’s 2023 Rally Is Exhausting
a strong labor market
“Bitcoin continues to drag its momentum following a stronger-than-expected January jobs report,” said Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange BitBank.
“Bitcoin has survived a week full of important events and economic data, keeping the price around $23,000, but the market may have run out of reasons to buy the coin and may be subject to profit-taking sell orders this week, ” They said.
On Friday, the Labor Department reported the strongest gain in non-farm payrolls for the month of January — 517,000, far exceeding the Dow Jones estimate of 187,000 since July — and a 53-year low in the unemployment rate. after the release of the number produces treasure rose and US dollar index Followed – Both run opposite to crypto.
“The report has shocked everyone who was expecting the Fed to cut rates soon,” said Noel Acheson, economist and author of the Crypto Is Macro Now newsletter. “The boom in employment, and the official unemployment rate at its lowest in more than 50 years, shows that the outlook is still a ways to go, and reminds the market that the Fed has no other reason to bring rates down.” “
“Expectations are going to tighten further, and higher rates (whatever the Fed is saying) for longer periods of time, which doesn’t bode well for risk assets,” he said.
Waiting For A Crypto Pullback
For many investors and analysts, the crypto market is showing a bullish trend, and may have found a December low of $17,000, but is likely to make at least one more halt before starting a more meaningful bull run. .
According to Wolfe Research, bitcoin is trading “in its most overbought position in two years” and is “due to break-check”.
Many believe that the macro environment will continue to be a major challenge for risk assets including crypto. In 2022, the correlation of crypto with stocks was at its highest level and this trend is not likely to end.
Fed Chair Jerome Powell is scheduled to speak at the Washington DC Economic Club on Tuesday, and several other Fed members are set to deliver speeches this week.
Hasegawa said, “Given last week’s failure to completely quell the market’s optimistic rate outlook, Fed members will continue to remind the market that the federal funds rate will climb above 5% and remain there throughout the year.” “
