Bitcoin and Ethereum price expectations
Bitcoin (BTC) has been dropping and is currently below $22,000. Meanwhile, its global market cap is nearing the $1T mark. Most cryptos, including Ethereum (ETH) and BTC, have seen broad volume declines over the past few days.
The decision of US-based crypto exchange Kraken caused this decline to stop its betting service and pay a $30M fine for business registration. As a result, the cryptocurrency market had a negative effect, causing the loss of BTC.
The bullish remarks made by several prominent figures about Bitcoin prices are a key factor in avoiding further losses for BTC. For example, the CEO of Pantera Capital believes that despite some negative market sentiment, Bitcoin has already started the next market cycle.
Meanwhile, the Blockstream co-founder is optimistic that the value of Bitcoin will rise to $10M within the next nine years. This will increase its market size to $200T. Bitcoin mining companies such as Core Scientific, CleanSpark, and Riot saw an increase in the production of the cryptocurrency in January. This is another critical factor that could help limit BTC price losses.
The danger of the crypto Market
The global crypto market has experienced a substantial selloff, and it is possible to fall below $1T. Bitcoin (BTC) didn’t break the $22,000 barrier over the weekend and is currently trading well below that level. Other popular cryptocurrencies such as Dogecoin, Ripple, Solana, and Litecoin are also suffering losses.
However, the drop was caused by US-based cryptocurrency exchange Kraken’s decision to stop its betting service and pay a $30 mill fine to the SEC for failing to register the business.
The SEC and crypto exchange Kraken have reached an agreement that clarifies that staking as a technical service will continue in the U.S. but with more transparency around the entry of tokens to prevent abuse of the fund. This development has led to an increase in the price of liquid tokens.
Thus, the two macroeconomic factors driving price changes in the cryptocurrency market are regulatory uncertainty and higher-than-expected consumer prices in December.
The increase in the U.S. dollar is another factor that affects cryptocurrencies. The broad U.S. dollar index rebounded to hit a five-week high on Monday, buoyed by expectations of further tightening by the Federal Reserve ahead of the release of critical consumer price data due later in the day.
Meantime, the broader U.S. dollar index is nearing five-week highs against major rivals.
