Bitcoin, the world’s most valuable cryptocurrency, dropped more than 2% today to $19,061. At the time of writing, the total market capitalization of cryptocurrencies is $920 billion, just shy of $1 trillion.
The stronger economic events in the United States are keeping the dollar bullish while weighing on the prices of Bitcoin and Ethereum. The majority of investors are looking forward to the release of US inflation figures on Thursday.
Bitcoin Price
The current Bitcoin price is $19,100.67, and the 24-hour trading volume is $28 billion. Bitcoin has fallen by 1.32% in the last 24 hours and more than 4% in the last seven days.
Yesterday, the prices of BTC and ETH fell by 2% and 3%, respectively. CoinMarketCap currently ranks first, with a live market cap of $366 billion.
Bitcoin and Ethereum Will Achieve High Values Post-Recession
Paul Tudor Jones, a well-known investor, has stated that scarce digital assets will rise in value in the future, confirming his belief in cryptocurrencies.
On October 10, the billionaire hedge fund manager discussed the role of cryptocurrencies in the current macroeconomic environment with CNBC’s Squawk Box. Jones expressed his belief that digital assets will grow rapidly in the future and his assessment of scarce cryptocurrencies benefits the value of ETH and BTC.
According to Paul Tudor Jones, Bitcoin and Ethereum may benefit from rising inflation and precarious macroeconomic situations because of their scarcity.
Markets, in his opinion, may rise if the Federal Reserve stops raising interest rates to combat inflation, despite the US economy being on the verge of a recession. The Fed’s interest rate hike expectation of 4.6% in 2023 has increased economists’ expectations of further increases before the end of the year.
The current fund rate is between 3% and 3.25%. The crypto market has suffered this year due to the Fed’s strict anti-inflation policy, but this could change if the Fed changes its policy.
Furthermore, according to Jones, cryptocurrency will be ready to take the spotlight when the tides turn, but first, there will be a recession.
Focus on the US Inflation Report
The US Consumer Price Index (CPI) statistics are set to be released on Thursday, October 13, but the crypto market is already factoring in the impact of higher CPI figures, causing Bitcoin to fall.
The annual inflation rate in the United States decreased for the second consecutive month in August 2022, coming in at 8.3% from 8.5% in July. This was the lowest rate in four months, though it was still higher than market expectations of 8.1%.
The US CPI index was 296.17 points in August, compared to 296.28 points the previous month and 295.53 points expected by the market.
However, the Bureau of Labor Statistics may show a decrease from 8.3% in August to 8.1% in September. It is, however, expected to be four times the Federal Reserve’s 2% inflation target
BTC Under Pressure amid Bitcoin Mining Difficulty
On October 10, the mining difficulty for Bitcoin (BTC) increased dramatically, reaching a new high since May 2021. BTC mining difficulty increased by 13.5% to 35.61T, with an average hash rate of 254.80 EH/s. The increased hash rate makes mining even more difficult in an already difficult crypto winter and inflation-ridden market.
Several factors may have contributed to the increase in mining difficulty or hash rate.
The Ethereum Merge, which put proof-of-work miners in a bind after switching to proof-of-stake, is also said to have prompted miners to repurpose their equipment and use it to mine bitcoins, which may have increased the hash rate.
Despite the mining difficulty, Bitcoin prices have failed to gain traction; instead, the BTC price has increased just by 1.7% in the last 14 days, defying the popular belief that the price rises as mining difficulty increases.
Bitcoin Price Forecast – Where is the Bottom for BTC?
The BTC/USD pair is trading in line with the Asian session’s Bitcoin price prediction report. On the daily timeframe, BTC is falling toward a key support level of $18,970. The triple bottom pattern is likely to extend support at $18,970; this level could act as a bottom, and BTC may rebound if it stays above this level.
The BTC is still bearish, with the 50-day moving average (MA) at $19,850 providing significant resistance. A break below the $18,970 support level, on the other hand, could send BTC down to $18416.59 or $17,709 levels.
On the daily timeframe, a descending triangle pattern is still in place, and it is likely to keep BTC bearish until it breaks out of the $20,275 resistance level. If Bitcoin rises above $20,475, it has the potential to test the next resistance level of $21,905 or $22,760.
New Altcoin News
Tamadoge, a meme coin, remains prominent among its Ultra-rate NFTs, which start at 1 WITH on OpenSea. Tamadoge has become the third most valuable meme coin in the cryptocurrency market and is available on various exchanges, including OKX, MEXC, BKEX, BitMart, and LBank.
On the other hand, the project’s native currency, the IMPT token, has performed admirably in its presale, raising $3.3 million since October 3. The presale will continue until November 25 or until it sells out.
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