Tuesday, February 27, 2024

Market Watch Jan 23: Bitcoin Stops Short of $23,000 Amid Wider Economic Concerns.

After jumping past $23,000, Bitcoin made a back track and settled just near the crucial $22,660 mark. There are growing concerns about the wider economy and the potential of a brief pause in the crypto market rally.

Bitcoin’s rally last week was followed by a notable recovery in traditional markets, particularly the tech-heavy Nasdaq Composite Index. Investors hope that the US Federal Reserve will reduce the pace and length of interest rate hikes. Moreover, the fear of recession has increased as Fed Reserve Governor Christopher Waller said a soft recession should be tolerated if it meant bringing inflation down.

Bitcoin is currently holding at $22,691, while Ether is trading at $1,632. Altcoins in the broader crypto market witnessed slight gains. Avalanche AVAX is the biggest gainer. It’s up by 5.82%, followed by Dogecoin, which has gained 5.45%. Uniswap is up by 2.36%, Cardano 2.08%, Polygon MATIC 1.91%, and Polkadot 1.68%.  Solana is in the red, it lost 1.56% in the last 24 hours.

Joe DiPasquale, CEO of BitBull Capital, said Bitcoin’s rise was typical for first quarters. He highlighted a long consolidation period that saw shorts accumulating. The market’s rise is driven by the short squeeze. DiPasquale believes that Bitcoin and several altcoins are overheated and due for correction. He said it wouldn’t come as a surprise for the leading cryptocurrency to test $20,000 in the coming days. The analyst urged market participants to be mindful of downside risks and seek to take profits. DiPasquale said the market needs more time and could materialize by the end of the year.

All for the test.

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