The crypto market witnessed significant upward momentum on Monday and started the week on a positive note. The global crypto market cap rose more than 3%, supported by a 100% jump in trading volume. Traders expected a recovery in the coming weeks, but Bitcoin and Ethereum eventually surged above USD 17,000 and USD 1,300. Here are the top reasons supporting the recovery of the crypto market.
Has the crypto market actually turned bullish?
The main reason behind the rally in the crypto market is a slowdown in wage growth and a contraction in activity in the US services sector, pointing to less aggressive rate hikes by the Federal Reserve.
In addition, Bitcoin and Ethereum prices remained strongly above key support levels despite a crucial last week. Also, crypto prices saw upward momentum after the release of FOMC Minutes.
Several macroeconomic factors point to slowing inflation and recovery in the global economy. China’s reopening of international borders and efforts by other central banks to reduce inflation have boosted investor sentiment. As a result, stock markets in Asia and Europe open in the green today.
In addition, the US dollar index (DXY) fell to 103.43 in the past 24 hours, pushing the price of Bitcoin above $17,000. However, volatility can be expected this week due to a number of reversal events.
Financial services firms BlackRock and Morgan Stanley indirectly boost Bitcoin prices by increasing GBTC and crypto stock holdings in their funds.
Crypto Analysts Prediction on Bitcoin and Ethereum Prices
Bitcoin price is trading at $17,210, up nearly 2% in the past 24 hours. Meanwhile, Ethereum’s price is up nearly 4% in the past 24 hours, with a current price of $1,308.
Crypto analysts such as Michael van de Poppe have previously pointed out that Bitcoin and Ethereum prices could rise until the next FOMC rate hike on February 1. Altcoins will likely follow the recovery of the dominant cryptocurrencies. However, a slide would be featured the following month.
According to crypto analyst CredibleCrypto, ETH price will drop below USD 1,080. While $1,170 is the best level to buy Ethereum for the long term, whales expect Ethereum accumulation below $1,100. However, he also said that ETH price may not stay below USD 1,170 and will recover soon.
Also Read: Cardano (ADA) and Solana (SOL) Lead Altcoin Rally
Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for quite some time and is currently covering all the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
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