The overall crypto market had gained massive profit with the beginning of 2023, but now most of the cryptocurrencies like Bitcoin have given up their profit. This has resulted in Bitcoin losing its key level of $22,000 which is now trading around $21,500. At the time of reporting, Bitcoin is priced at $21,707 after a drop of 0.99% over the last 24hrs.
The current crypto corrections were already predicted by market experts, but the SEC’s move against Kraken was unexpected. This event gave rise to a major sell-off and after Kraken decided to end its staking service, traders have speculated that Coinbase will be the next.
Now the concern over how the crypto market rides its further days have increased. To answer this, one of the well-known crypto analysts, Delphi Digital claims that the Crypto market will have a bumpy ride in 2023. Meanwhile, fellow analysts Kevin Kelly and Jason Pagoulatos are of the opinion that the negative macro events will further pull down the market at least till the third quarter of 2023.
Fed To Continue Its Interest rate Hikes
Apart from the upcoming negative events, there are a few other factors which are said to influence the crypto market in the coming days. The first is the US Dollar Index which is now seeing some positive move. As per DXY’s trade in the last seven days, one can easily say that it has now rebounded from its January low of 101. It’s often observed that Bitcoin has mostly followed DXY, which means that if DXY continues its positive move, BTC could soon regain the lost rally.
On the contrary, during the recent FOMC meeting, the Fed has claimed that the interest rate hike will continue until the inflation rate drops below 2%. However, the next market move all depends on the release of January CPI report which is scheduled for Feb 14.