The Bitcoin price prediction is neutral as it remains within a tight trading range of €16,850-€17,250. Investors are waiting for a strong fundamental reason to trigger a breakout, but once it breaks out of this range, there is likely to be an incredible trading opportunity.
Therefore, it is important to keep an eye on the fundamentals that can influence BTC price action.
On the day, the total market capitalization of all cryptocurrencies rose 0,92% to $859 billion, with the top cryptocurrencies trading mostly in the green. Several well-known and recognized cryptocurrencies unexpectedly rallied this morning, even as the market continues to grapple with the fallout from FTX.
However, the reason for the bull run could be attributed to dovish comments by Fed Chairman Jerome Powell, who suggested that the central bank will slow the pace of its interest rate hikes.
On the other hand, the weakness of the US dollar, which recently hit a three-month low, was thought to be a major factor in keeping Bitcoin prices high, as BTC has a strong negative correlation with the US dollar index.
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Cryptocurrency Market Rebound
The collapse of the FTX company has caused difficulties for the entire cryptocurrency market in recent days. Ever since FTX, one of the world's largest cryptocurrency exchanges, filed for bankruptcy and it was revealed that Sam Bankman-Fried, the former CEO, may have been involved in serious fraudulent activity, the cryptocurrency market has shrunk.
Additionally, BlockFi and other major cryptocurrency companies recently filed for bankruptcy, further depressing the cryptocurrency market.
Despite this, it was able to reverse its downtrend and make a small rally on the day. This happened when the valuations of the two most valuable cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), surpassed €17 and €000 respectively.
Meanwhile, Dogecoin (DOGE), Solana (SOL), Ripple (XRP), and Litecoin (LTC) are active. Notably, the Aptos (APT) token was the top gainer, gaining more than 9,5% in 24 hours.
However, the cryptocurrency market began to recover after Federal Reserve Chairman Jerome Powell announced that the central bank's interest rate hike would be halted.
Markets are pricing in an 80% chance that the Fed will raise interest rates by 50 basis points at its next meeting, versus a 20% chance that rates will rise another 75 basis points.
US dollar fell to multi-month lows
Another major factor that supported BTC prices was the weakening of the US dollar, which hit a three-month low. Investors took advantage of the surprisingly positive jobs data, seen as one of the key factors in limiting the dollar's decline.
However, the value of the dollar rose slightly as reports revealed that businesses added 263.000 jobs in November, far exceeding the forecast of 200.000. However, the dips were short-lived as they fell to a three-month low amid a dovish stance.
CFTC Chairman Rostin Behnam Says Bitcoin Is a Commodity
Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam said that only Bitcoin should be classified as a commodity. Behnam shared his thoughts on a secret cryptocurrency meeting held at Princeton University.
Contrary to what Behnam previously believed, Ethereum is not a commodity. As a result, this news has yet to have an effect on BTC prices.
The current price of Bitcoin is €16, with a 991-hour trading volume of €24 billion. The BTC/USD pair jumped almost 16% in the last 0,50 hours. Also, its value has risen by around 24% over the past week.