Home Forex Markets Bitcoin (BTCUSD) Recovers, Total Crypto Market Cap Back at $1 Trillion

Bitcoin (BTCUSD) Recovers, Total Crypto Market Cap Back at $1 Trillion

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Bitcoin (BTCUSD) Recovers, Total Crypto Market Cap Back at $1 Trillion

Inflation continues to cool down, the Fed’s interest rate hike expectations have weakened, the U.S. dollar’s ​​continuous decline has stimulated a rebound in tokens such as Bitcoin and Ethereum, and the total market value of cryptocurrencies has returned to $1 trillion.

U.S. dollar keeps falling

The dollar’s two-year uptrend has faltered.

The data shows that core inflation in the United States, including CPI, continues to cool down. With international energy prices falling, the market expects the Fed to raise interest rates by only 25 basis points in February, which is lower than the previous 50 basis points or even 75 basis points. Risk sentiment has eased greatly .

The Fed’s interest rate hike expectation is the fundamental factor supporting the strong dollar.Now that interest rate hike expectations have weakened and the discussion of the end of the Fed’s monetary policy has become more heated, funds have flowed out of the US dollar. The plunge in the U.S. dollar has stimulated a major counterattack in risky assets such as the stock market and cryptocurrencies.

Is the recovery of the cryptocurrency market really coming?

As the leader of tokens, Bitcoin has a huge impact on cryptocurrencies. The rapid recovery of Bitcoin to above 21,000 shows the weakness of the US dollar and the enthusiasm of funds to “buy the bottom”. The total market capitalization of cryptocurrencies is back at $1 trillion as the two largest tokens, Bitcoin and Ethereum, rallied.

It is worth noting that this is only caused by the decline of the US dollar, and the fundamentals of the currency circle have not undergone gratifying changes. Conversely, the bankruptcy of FTX continues to rock the cryptocurrency industry, with many companies still waiting for changes in the regulatory situation. It should be said that the token rebound caused by the US dollar has given the currency circle a respite. As for the changes in the industry, the situation still needs to be developed. When the bullishness of the dollar rebound is fully digested, the market has not undergone substantial changes, and the trend is still facing downside risks. The recovery of the cryptocurrency market still has some way to go, so be cautious.

Of course, it may be a good opportunity for bystanders to enter the game during this period, so be sure to control your positions and use leverage carefully.

Bitcoin trend: rebound in place, above 22000 is the key price

The entire token market will be sluggish in 2022, and Bitcoin will fall in a stepwise manner, with obvious characteristics of a bear market.

More than two months ago, Bitcoin fell below the $18,000 mark, and the trend was in the “darkest moment” in recent years. The dollar weakens, and the bulls launch a retaliatory rebound. If they fail to break through the key resistance, they still face a considerable risk of withdrawal.

The 22,000 line is a short-term resistance worthy of attention. If it continues to be blocked here, Bitcoin may still fall back to the 20,000 line, and then test the 18,000 support. If it can break through the 22,000 resistance pointed by the 68564 high downward trend line, the short-term decline will be wiped out, and then the trend of consolidating the bottom will continue. In the next few months, we will continue to look at the 25,000 and 30,000 mark. This is conducive to the overall upward trend of Bitcoin.

(by Arthur)

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