The price of Bitcoin has been in a state of flux over the past few weeks, with the crypto reaching a peak of $25,000 in February before dropping back below the $24,000 level. The largest crypto has faced resistance at the $24,000 level—to say nothing of $25,000, the price level which represents its recent peak. With no U.S. stock trading or significant news events on Presidents' Day, cryptocurrencies kept going up, with Bitcoin reaching its highest level since June 2020.
As of the writing of this article, the total market value of cryptocurrencies worldwide was $1.08 trillion, a rise of 2.02% from the previous day. At the same time, the total crypto market volume in the last 24 hours increased by 14.23% and is currently at 54.38 billion USD. Bitcoin is trading for $23,675 at time of writing, with a market cap of $431.86 billion USD, and a trading volume of $12.70%.
On March 1st, the Bitcoin Exchange Whale Ratio – a measure which compares the biggest 10 Bitcoin transfers coming into exchanges to the total amount of exchange inflows – was 0.78, an increase from the 0.5 of the preceding month. Additionally, it looks like Bitcoin whales, unique entities owning 1,000 BTC or more, are also not convinced of the recovery in the crypto markets. Glassnode has reported that the number of Bitcoin whales has decreased to 1,663, a figure much lower than the high of 2,161 in February 2021.
The likelihood of the U.S. Federal Reserve increasing their benchmark fed funds rate by 50 basis points in March has increased after the PCE Price Index uncovered the disinflation tendency reversed in January. With the Fed reportedly preferring the PCE over the Consumer Price Index (CPI) to gauge inflation, one of the main reasons behind PCE preference is its broader scope and ability to gauge the economy’s strength.
Crypto analyst Michael van de Poppe has indicated that the market's direction is generally on the rise, as Bitcoin has soared from $16K to $25K within a few weeks. If Bitcoin surpasses the $25K threshold, it is likely to skyrocket beyond $30K and beyond. Bitcoin's inability to breach the significant resistance level implies that the market may soon be experiencing yet another correction.
0. “Bitcoin Price Stalls Below $24,000. Long-Term Crypto Holders Are Still Buying.” Barron's, 28 Feb. 2023, https://www.barrons.com/articles/bitcoin-ethereum-price-crypto-markets-today-51c2a3cc
1. “Bitcoin trades flat as economic data weighs heavily on risk assets” Kitco NEWS, 27 Feb. 2023, https://www.kitco.com/news/2023-02-27/Bitcoin-trades-flat-as-economic-data-weighs-heavily-on-risk-assets.html
2. “Crypto Prices Today: Bitcoin and Altcoins Drop Over 4%” CoinGape, 3 Mar. 2023, https://coingape.com/crypto-prices-today-bitcoin-and-altcoins-drop-over-4-following-silvergate-filings-delay
3. “Top Trader Predicts Bitcoin (BTC) Eruption After Impending Fakeout – Here’s His Target” The Daily Hodl, 2 Mar. 2023, https://dailyhodl.com/2023/03/02/top-trader-predicts-bitcoin-btc-eruption-after-impending-fakeout-heres-his-target
4. “Two Considerations as Bitcoin Withdraws Toward $23K” CryptoPotato, 2 Mar. 2023, https://cryptopotato.com/two-considerations-as-bitcoin-withdraws-toward-23k
5. “Price analysis 2/27: SPX, DXY, BTC, ETH, BNB, XRP, ADA, MATIC, DOGE, SOL” Cointelegraph, 27 Feb. 2023, https://cointelegraph.com/news/price-analysis-2-27-spx-dxy-btc-eth-bnb-xrp-ada-matic-doge-sol
6. “Bitcoin Price Falls Back Towards Week's Low on Inflation Worry” msnNOW, 24 Feb. 2023, https://www.msn.com/en-us/money/markets/bitcoin-price-falls-back-towards-weeks-low-on-inflation-worry/ar-AA17TvAj
7. “Bitcoin Falls 3% As PCE Rises 0.6% in January” CryptoPotato, 24 Feb. 2023, https://cryptopotato.com/bitcoin-falls-3-following-as-pce-rises-0-6-in-january
8. “Altcoins in Correction Mode: Is it the Perfect Time to Load Up Your Bags?” Coinpedia Fintech News, 22 Feb. 2023, https://coinpedia.org/altcoin/altcoins-in-correction-mode-is-it-the-perfect-time-to-load-up-your-bags/