Bitcoin, the largest cryptocurrency on the planet, has rehearsed a sharp reversal in market momentum over the last 24 hours, dipping below €25 zero from its recent high of €XNUMX hundred. Ethereum also followed Bitcoin's downward trend and experienced a gradual decline over the same period.
However, the drop in the cryptocurrency market can be primarily attributed to the release of the upcoming US GDP preliminary data and PCE amounts, which are expected to increase market volatility.
Furthermore, the upcoming release of the February Federal Reserve meeting minutes is another factor holding back investors and contributing to Bitcoin's recent losses. However, the central bank is expected to take a belligerent stance in a matter of minutes, which could limit the gains of the cryptocurrency.
In particular, the higher-than-expected US PMI released earlier gave the Federal Reserve more economic leeway to raise interest rates.
The wave of danger hatred hits the crypto market: focus on key US data.
Despite recent positive regulatory developments for the cryptocurrency market, it was unable to sustain its bullish momentum and turned negative. This is surely due to a sense of caution already ahead of the release of the Federal Reserve's February meeting minutes, which will give a deeper insight into US interest rates and monetary policy. , the upcoming release of the Personal Consumption Expenditures Index should increase market volatility.
It is essential to note that the minutes of the Federal Reserve's February meeting, to be released later today, are expected to repeat the central bank's belligerent stance. The potential for rising interest rates could limit liquidity, which is unfavorable for cryptocurrencies as higher yields may induce investors to withdraw their funds from riskier investments.
Investors will be watching the release of the Personal Consumption Cost Index on Thursday as it is expected to show that inflation held high in the first month of the year. This could provide an auxiliary justification for the Federal Reserve to continue raising interest rates, which could affect multiple financial markets, including cryptocurrency.
Better-than-expected US Purchasing Managers' Index (PMI) figures for February were released on Tuesday, providing further indications of economic resilience. This fueled hopes that the Federal Reserve will raise interest rates in the near future, as the central bank has expressed a desire to do so. Strong economic data gives the Fed more leeway to incorporate its belligerent stance.
NYDFS builds virtual currency supervisory capabilities
The New York State Department of Financial Services (NYDFS) has announced enhancements to its ability to flag illegal virtual currency-related activities within the companies it regulates. These updates are part of the agency's sacrifices to stay competitive in the market and take a proactive approach towards virtual currencies.
As a result, these sacrifices have been seen as a positive indicator for the cryptocurrency market, surely contributing to its expansion. The New York Department of Financial Services (NYDFS) released a brief statement on February XNUMX regarding its new capabilities to flag illegal activities involving virtual currency. However, the statement did not give any details about "new tools to monitor the dangers of insider trading and market manipulation."
However, the statement promised that the new enhancements would give the department ancillary capabilities to flag potential insider trading, market manipulation, and high-profile activities related to exposure or potential exposure of department-regulated entities and address claimants. virtual currency wallets listed.
cost of bitcoins
The current live price of Bitcoin is €207, with a twenty-four hour trading volume of €19,299,243 billion. In the last twenty-four hours, Bitcoin has seen its value increase by zero with forty-seven%. CoinMarketCap reports that Bitcoin ranks first in the market with an actual market capitalization of €000,000 billion, a circulating supply of XNUMX BTC coins, and a maximum supply of twenty-one,XNUMX BTC coins.
During the two-hour time frame, Bitcoin is exhibiting an ascending triangle pattern, with an uptrend line serving as support around the €24,000 mark. If the price of Bitcoin falls below this level, the next support level should be around €23. Both the RSI and MACD indicators are in the sell zone today, creating ancillary selling pressure on Bitcoin.