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The world’s top cryptocurrency, Bitcoin, has sharply declined, reaching its lowest value in two months. The second most valuable cryptocurrency, Ether, also experienced a similar downward trend in value.
On March 10, Bitcoin briefly dropped below $20,000 for the first time in nearly two months, hitting a low of $19,918.
However, the Federal Reserve’s hawkish stance has affected the crypto market, indicating that the next interest rate hike will exceed market consensus, causing uncertainty among traders and investors.
Moreover, recent government crackdowns have further contributed to the decline in the cryptocurrency market, making it difficult for the sector to gain positive momentum.
Risk-Off Mood In Crypto Market
The global cryptocurrency market has been experiencing a downturn, with various cryptocurrencies suffering significant losses. Investor confidence has been weighed down by concerns about upcoming interest rate rises and regulatory uncertainty, contributing to a global bear market.
It is worth noting that the recent statements made by Federal Reserve Chair Jerome Powell have increased market uncertainty. Powell’s hawkish stance on prospective interest rate rises has sparked fears about the potential impact on the cryptocurrency sector.
Moreover, recent regulatory actions against major players such as Paxos and Binance and the SEC’s crackdown on centralized staking have added to the negative sentiment in the crypto market.
This has increased uncertainty around the regulatory environment for cryptocurrencies, which has historically been a contentious issue for the industry.
Bullish US Dollar Contributes to Pressure on Crypto Market
On the other hand, the stronger US dollar was another factor exerting negative pressure on the cryptocurrency market. As Fed Chair Jerome Powell’s recent statements regarding prospective interest rate rise to contain inflation have dominated market sentiment, the US currency has been bolstered. As a result, the dollar has risen against key currencies.
Hence, the bullish trend in the US dollar has also affected the cryptocurrency market, contributing to recent losses in Bitcoin and other cryptocurrencies.
When the US dollar is strong, investors tend to shift their funds away from riskier investments like cryptocurrencies and into safe-haven assets.
The overall market sentiment is cautious, as Powell’s statements have created uncertainty among traders and investors. Given the possibility of further interest rate rises, many are closely monitoring for any additional clues from the Federal Reserve about its intentions.
$1B Worth of Bitcoin Moved from US Seized Wallets
In March 2023, approximately 50,000 Bitcoin worth $1 billion were transferred from law enforcement seized accounts in the United States. However, most transfers were internal, with 9,861 BTC transmitted to Coinbase and the remainder split between two wallet addresses.
Hence, the unexpected transfer has raised concerns among traders and investors regarding potential market turbulence in the future. It is worth noting that the impact of such a massive BTC transfer is uncertain, as it is unknown whether the recipients will sell or retain the funds.
However, the transfer could potentially increase selling pressure on the market, decreasing BTC prices. On the other hand, if the funds are retained by the beneficiaries, the circulating supply of BTC may decrease, potentially resulting in a price increase.
Bitcoin Price
The live Bitcoin price is $19,969, with a 24-hour trading volume of $36 billion. Over the last 24 hours, Bitcoin has dropped 8.16%. It holds the top ranking on CoinMarketCap with a live market cap of $385 billion.
Bitcoin is trading below $21,000 and faces resistance at $20,400, with major resistance near $22,000. A close above $22,600 may trigger a bullish momentum toward $23,000.
Failure to clear $21,000 could lead to a decline toward $19,800 or even $18,400.
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Top Cryptocurrencies to Watch in 2023
Check out Cryptonews’ Industry Talk team’s selection of the top 15 altcoins to watch in 2023, regularly updated with new ICO projects and altcoins. Stay up-to-date with the latest developments by visiting the list often.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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