Bitcoin and Ethereum are two of the most traded cryptocurrencies on the market, which have seen a lack of volatility in recent days. As investors and traders eagerly await the Federal Open Market Committee (FOMC) minutes due to be released tomorrow, the question on everyone's mind is whether BTC and ETH are about to see a rally.
Bitcoin (BTC), the largest cryptocurrency on the planet, continued to rise and gained ground above the $1700 USD mark. Meanwhile, the second most popular cryptocurrency, Ethereum (ETH), surpassed €XNUMX for the first time since September XNUMX.
Bitcoin is up 7% in the last XNUMX days, which indicates rapid development. Other well-known cryptocurrencies such as Dogecoin (DOGE), Solana (SOL), Litecoin (LTC) and Ripple (XRP) also saw marginal increases.
The total market capitalization of each and every cryptocurrency was one.XNUMX trillion US dollars, representing an increase of one.XNUMX% in a twenty-four hour period.
However, the reason for its rebound could be related to the improvement in macroeconomic conditions and the renewed optimism of investors in the markets. In addition to this, the Hong Kong Securities and Futures Commission (SFC) has recommended new laws for cryptocurrency trading platforms to increase investor safety. This was seen as another essential factor influencing Bitcoin values.
US dollar rally has stalled
The US dollar, which had been trending higher due to strong labor market data and persistent inflation, lost some momentum as traders awaited economic data to determine if it was always justifiable to boost the dollar higher. rise. Despite rising for 3 successive weeks, gaining around 6% in February, the US Dollar Index has now stabilized around a hundred and four, after peaking at 67 weeks of one hundred four.XNUMX on Friday.
Therefore, the bearish US dollar played an essential role in supporting the cost of BTC, as Bitcoin has a high inverse connection to the US dollar index (DXY).
Moving on, the market is now awaiting the release of the minutes of the latest Fed meeting. However, traders will advance manufacturing data from Europe and the US later on Tuesday, such as Friday's latent PCE cost index. , to help guide your next moves.
Hong Kong raises crypto platform regulation
Cryptocurrency costs have risen further due to new licensing guidelines for cryptocurrency exchanges in the city of Hong Kong, which aim to transform the city into a hub for digital currencies. On the first day of the week, the Hong Kong Securities and Futures Commission (SFC) issued regulations for virtual asset trading platforms and now invites public comments.
According to the announcement, each and every cryptocurrency trading platform, including the ones that exist today, should start to assess and update their systems and procedures to comply with the new regime. They further added that those who do not intend to apply for a license should start arranging for a peaceful exit from the Hong Kong market. The regulation of Stablecoin will also start in the city of Hong Kong in the first month of summer this year.
cost of bitcoins
Technical analysis shows that the price of Bitcoin has been oscillating slowly within a tight range of €23,700 and €25,200. If the BTC/USD cost can break above the €25,200 resistance level, it could continue to rally towards the €26,000 level, which is the next significant resistance level.
However, major technical indicators including the RSI and MACD are showing divergence. While the RSI is currently above fifty and in the buy zone, the MACD is forming histograms below zero and in the sell zone. Investor irresolution is usually the result of this kind of mismatch.