• Bitcoin (BTC) has faced selling pressure after touching its 2023 high earlier this week. The crypto market reacted negatively to strong jobs data as it gives room to the Fed to hike interest rates further, resulting in the BTC price dropping below $30,000.
• Altcoins have also taken a hit with Ethereum (ETH) falling to $1,850 and 220k ETH options expiring with a Put Call Ratio of 0.48.
• Despite the sell-off, analysts remain optimistic about Bitcoin’s potential as economic indicators point towards an increasingly positive sentiment and the next 18 months are expected to be very exciting.
Bitcoin Plunges Below $30,000
Bitcoin (BTC) fell below $30,000 this week after reaching its 2023 high earlier in the month. The broader crypto market reacted negatively to strong jobs data which gave room for the Federal Reserve (Fed) to hike interest rates further.
Altcoins Enter Deeper Correction
Apart from Bitcoin, altcoins are also facing a deeper correction with Ethereum (ETH) trading at $1,850 and 220k ETH options expiring with a Put Call Ratio of 0.48. This has resulted in an overall erosion of nearly $25 billion from Bitcoin’s market cap since its peak earlier this year.
Positive Economic Indicators
Despite the sell-off, positive economic indicators have been observed lately including ADP private sector jobs report and ISM Services Index which both showed unexpected strength. These numbers suggest that there is increasing optimism among investors but concerns about inflation could cause a shift in sentiment again in future days ahead.
Rate Hikes Ahead?
The recent developments give room for rate hikes ahead although Federal Reserve appears to be closing in on peak rates if not already reached according to Banxa’s U.S CEO Richard Mico who believes that we’ll likely have to wait until next year’s Bitcoin halving before experiencing full-on bull mode but “we’re getting closer by the day” he noted in an email sent to CoinDesk .
The Exciting 18 Months Ahead
Analysts remain optimistic about Bitcoin’s potential over the next 18 months as they expect it will be a continued uptrend based on current indications and activity levels on networks such as Ethereum staying robust despite ETH price tanking down.. Follow us for the latest crypto news!