Bitcoin temporarily approaches $ 24,000
After surpassing $23,900 over the weekend, bitcoin fell slightly amid continued investor optimism. However, one market insider said Bitcoin is poised for a fall.
● CoinDesk Market Index (CMI): 1,120.88, +3.4%
Bitcoin: $23,762, +2.8%
Ethereum: $1,645, +3.8%
● S&P500: 4,070.56, +0.2%
Gold: $1,945, +0.9%
10-Year US Treasury Yield: 3.52%, +0.0
Bitcoin (BTC) surged close to $24,000 over the weekend for the first time since mid-August. It briefly exceeded $23,900 on the 29th and then fell to around $23,760, rising about 3% in 24 hours.
Over the past week, the market has remained positive despite sometimes conflicting economic data and disappointing fourth-quarter results from global giants.
The US Department of Commerce announced on the 27th that personal consumption expenditures (PCE) in December decreased by 0.2% from the previous month. It was the slowest rise since October 2021, signaling a slowdown in inflation. PCE is an inflation indicator that the US Federal Reserve Board (FRB) emphasizes in monetary policy decisions.
“The decline in price inflation is welcome as it brings inflation closer to the Fed's 2% target, but underscores that service inflation remains persistent and there is still work for the Fed to do.” said First Republic Bank in its weekly investor bulletin.
Still, BitBull Capital CEO Joe DiPasquale said the Federal Open Market Committee (FOMC) at its two-day meeting starting Wednesday, as widely expected, will drop 0.25. He said a rate hike of 10% is likely. Hopes of a dovish Fed policy turn helped boost crypto prices and other risky assets in January.
Ethereum (ETH) outperformed Bitcoin on Wednesday, briefly rising about 5% to above $1,650. Ethereum has crossed $1,650 twice in the past nine days.
Among other major altcoins, Metaverse tokens Decentraland (MANA) and The Sandbox (SAND) rose about 15%, about 7%, and Solana (SOL) also rose about 8.2%.
In stock markets, the Nasdaq and S&P 500 each rose more than 1%. Investors are cautiously optimistic about inflation and other macroeconomic uncertainties as tech giants such as Amazon, Salesforce and Microsoft announce job cuts in anticipation of a contracting economy. .
But according to BitBull's DiPasquale, the current market conditions are poised for a fall after weeks of gains fueled by short squeezes and investor optimism.
“Given the possibility of a fall after weeks of gains and the possibility that Bitcoin will test $20,000 again in the near future, investors may take profit-taking,” he said. rice field.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Original: First Mover Asia: Amazon's Web3 Foray Will Be a Compliance Nightmare; Bitcoin Tops $23.9K