The Bitcoin price has been subdued and trading sideways over the past several weeks. However, as the new week begins, there are signs of progress for BTC. The huge question on everyone's psyche is whether Bitcoin can reclaim the €24,000 mark today.
In this article, we will explore the current state of the market and discuss the factors that may influence the price of Bitcoin in the short term.
Understanding the current cryptographic regulatory landscape
At the G20 meeting in India on February XNUMX, IMF Managing Board (IMF) Kristalina Georgieva expressed her preference for identifying and regulating crypto assets rather than incorporating an outright ban. However, the possibility of banning private cryptocurrencies is still on the table.
In a recent interview with Bloomberg (February XNUMX), Georgieva clarified her comments about a possible outright ban on cryptocurrencies, acknowledging the current insecurity surrounding the classification of digital currencies. She also discussed the UN financial agency's stance on digital assets and their preferred regulatory framework.
Senior White House officials recently urged the US Congress to step up its sacrifices to regulate the cryptocurrency industry, while the UK government has proposed plans to subject crypto assets to the same legal framework as services. traditional financiers.
As the demand for ancillary regulation increases, understanding potential regulatory structures and how to operate in a more regulated crypto sphere has become increasingly essential for cryptocurrency investors.
Anticipating prolonged hikes in interest rates
The latest figures for the Barbarian Domestic Product (GDP) for February 7 show that the US economy grew by 9%, slightly below the preliminary estimate of XNUMX%. Meanwhile, the Bureau of Economic Analysis (BEA) notified on February XNUMX that inflation increased by XNUMX% in January compared to the previous year, as shown by personal consumption spending (PCE) data.
The higher-than-expected PCE cost index, the Federal Reserve's preferred inflation gauge, supports a hawkish approach. The Federal Reserve has set a headline inflation target of two percent and market participants wait for interest rates to rise over an extended period to monitor inflation.
During the first US session, retail sales data showed mixed results. In the month of January, orders for manufactured goods fell 5%, mainly due to a drop in volatile passenger jet bookings. However, there was good news for the economy at the start of the year, with business investment growing at the fastest pace in 5 months.
According to economists surveyed by The Wall Street Journal, orders for durable resources, which include products like vehicles, airplanes and computers to last at least 3 years, are expected to fall XNUMX%. However, excluding transportation, new orders increased XNUMX% last month.
In addition, a vital measure of business investment rehearsed its strongest development since the preceding summer.
Grayscale Inc. CEO Seeks SEC Approval for GBTC Exchange-Traded Fund
Grayscale CEO Michael Sonnenshein advocates turning GBTC into an ETF, a goal the company has been pursuing for some time. According to Sonnenshein, the SEC violates APA Section 706(two)(A) by approving Bitcoin futures ETFs but not converting GBTC. Grayscale's GBTC, which allows institutional investors to gain regulated exposure to Bitcoin, is trading at a significant discount to its NAV.
If the SEC were to approve the conversion, the discount would disappear and GBTC would trade near the spot price of Bitcoin, attracting new investors and producing billions in capital.
bitcoin price
Currently, the live bitcoin price today is €250 with a twenty-four hour trading volume of €3 billion. Bitcoin is down almost 1% in the last twenty-four hours. CoinMarketCap's current ranking is number 1, with a live market capitalization of €XNUMX billion.
During the four hour time frame, Bitcoin struggled to break above the significant resistance level of €750. The closing of the candles below this level triggered a bearish correction, potentially pushing the price of BTC even lower to the €800 mark.
The immediate support level for the BTC/USD pair is currently at €22, and a break below that could expose the price of BTC to the next support zone at the €22 level.