Top Reasons Why Bitcoin Price Lost Its $23K Resistance
The crypto market kicked off the year 2023 on a positive note and majority of the cryptocurrencies landed on a high trading area. However, now it looks like the market has taken a U-turn as most of the currencies including Bitcoin, Ethereum, XRP, Cardano, Solana and other large cap currencies have registered a loss. The Bitcoin price has shed nearly 1.5% in the last 24hrs while the lead altcoin, Ethereum, has lost its $1,600 level.
At the time of publication, Bitcoin is selling at $22,656 after a drop of 1.2% in the last 24hrs. Also Ethereum has lost 4.57% in the span of a day and is now trading at $1,553.
Why Is Bitcoin Price Down ?
The last three weeks of January have been exceptionally good for cryptocurrencies. Nevertheless, now as the flagship currency, Bitcoin gradually makes a downward movement which is considered to be highly unusual considering its last few days performance. This also points towards investors who have become less optimistic towards bitcoin’s price action.
It’s a known fact that Bitcoin and other large cap cryptocurrencies are highly correlated with tech stocks. Hence, this becomes one of the reasons for Bitcoin and other cryptocurrencies to register a loss today.
Secondly, the crypto market might be reacting to the upcoming US fourth-quarter gross domestic product (GDP) which is set to be released Thursday.
Thirdly, the market experts point towards the entry of hedge funds into short positions. Next, the volatility in the crypto market could be due to Microsoft’s cloud outage which has affected investors’ sentiment. Lastly, traders anticipating ease in the monetary policy in the coming days might have caused crypto market volatility.
However, next week’s Fed meeting is expected to give these cryptocurrencies a much required push if the inflation rate is decreasing.