For the past 24 hours, bitcoin has been almost entirely sideways. At this hour, the Bitcoin price is only 0.1% down according to data from Coingecko. By the time of going to press, the Bitcoin price had recovered and almost completely offset the losses. In the last 24 hours, Bitcoin has traded between $21,470 and $21,937. The trading volume increased by over 40% compared to the previous day. With losses of around 4% over the past week, it appears that the selling pressure has been cushioned by the bulls in the near term. While the Bitcoin price is still doing well in a much lighter digital currency market and was only slightly affected by the negative headlines about BUSD, it could still be the proverbial calm before the storm.
While massive capital was withdrawn from the broad market today and the start of the new week was easier, the Meta Masters Guild Presale Incidentally, once again proving that new coins often do not correlate with the breadth of the market. Because here again around $ 200,000 flowed into the gaming token – last chance, the advance sale ends in around three days.
Gaming token with 10x potential: Find out more here
Potential lawsuit against Paxos and BUSD shocks crypto market
The US Securities and Exchange Commission is getting serious in the fight against crypto. After being smiled at at the first “blow” against the unknown crypto exchange Bitzlato, the impacts are getting closer and closer to the epicenter of the digital currency market.
A strong corrective move ensued over the past week after Kraken’s staking-as-a-service ban became apparent.
Oh man, all I had to do was fill out a form on a website and tell people that staking rewards come from staking? Wish I’d seen this video before paying a $30m fine and agreeing to permanently shut down the service in the US. How dumb do I look. gosh
https://t.co/UPdQdnI6xN
— Jesse Powell (@jespow) February 10, 2023
The SEC and Kraken reached a settlement that includes an immediate suspension of staking offerings on US soil. The US Securities and Exchange Commission is now preparing to file a lawsuit against the stablecoin operator Paxos, which is accused of issuing an unregistered security (BUSD). The US Securities and Exchange Commission is currently not very forgiving. Regulation is pushed forward mercilessly. Although the Bitcoin price was relatively unimpressed today, this could change with the (probable) next steps.
The SEC’s campaign against cryptocurrencies currently seems somewhat absurd. Because the classification as securities actually requires an expectation of profits. But a stablecoin is designed to develop in line with the US dollar. The Howey test, which is used as a legal criterion for classifying securities, would therefore not be met. Although the test is not absolutely binding, courts can deviate in individual cases. However, why this could be the case for Paxos and BUSD remains more than questionable.
Downtrend line test pending: Volatile price action likely
Due to the recent sell-off, the Bitcoin price is once again approaching the long-term downward trend line on a daily basis, which the Bitcoin price only broke through in January 2023. The current price level between $21,100 and $21,300, in which there are multiple support levels, is decisive here. Explosive price action seems likely around the test of the downtrend line. If the retest is successful, the Bitcoin price could go up. If the bears sink the price below the trendline and January’s rally fakes out, the selling momentum could accelerate.
Economic growth in Europe, US inflation data and US retail sales: Macroeconomics remains relevant for BTC
Correlation between stocks & BTC remains high. Numerous economic data are relevant for the development of risky asset classes in the current week. At the same time, the CRV has deteriorated in the short term due to the January rally in equities & cryptos.
The gross domestic product for Europe, which will be published by Eurostat at 11 a.m., will start on Tuesday. The forecasts of the experts are based on a consensus of growth of 1.9%. Should GDP reflect solid growth, this should reinforce the ECB’s course of aggressive tightening policy. Key interest rates are likely to continue to rise. A weaker GDP is likely to show the European Central Bank that there are limits to its restrictive monetary policy. As a result, the euro is likely to depreciate in contrast to the USD, which in turn could negatively affect the Bitcoin price.
However, investors are likely to focus their attention on US inflation data this week. Because in December the inflation rate almost stagnated at 6.4%. In January, this is expected to drop to 6.2%. There is an increasing probability that the cooling of inflation will slow down and that slight temporary increases may be recorded. However, should inflation fall more than expected, it would be strongly bullish for BTC.
Last but not least, retail sales in the USA provide an indication of the consumer mood of US private households. There has been negative growth here for the past two months. The recovery to 1.6% should now follow in January.
Buy bitcoin now?
While investors with a long-term orientation can build up a commitment to Bitcoin with a clear conscience even in the current market phase and interpret potential setbacks as a buying opportunity, a short-term purchase is not an option. Bitcoin was largely resilient today and was also able to increase its market dominance. Relative strength to many altcoins is evident. Nevertheless, there are too many question marks around macroeconomics & SEC in the current week, which could cause unpredictable price movements.
This gaming cryptocurrency could explode in 2023 and rise more than BTC
Author: Daniel Robrecht
After studying law and management, Daniel decided to work as a freelance author and has been writing qualitative publications on various specialist topics for around 10 years now. As an investor, he gained years of experience with stocks & cryptocurrencies. In addition to a long-term investment approach, Daniel is also passionate about short-term markets. Through targeted further training at international universities, he has acquired extensive knowledge about the capital markets, stocks, cryptocurrencies and decentralized finance. Daniel’s primary focus is on general market trends, exciting stocks, business news and the digital currency market. In his private life, too, there is never a day without the financial markets. As an author, Daniel writes for leading German-language publications in this field. Daniel publishes for Finanzen.net, among others, Business2Communityand FXStreet.de. Daniel on LinkedIn.
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