Top Reasons Why Bitcoin Price Lost Its $23,000 Resistance

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The crypto market has started the year 2023 on a high note and the majority of cryptocurrencies have landed on a high trading zone. However, now it looks like the market has turned around as most currencies including Bitcoin, Ethereum, XRP, Cardano, Solana and other large cap currencies have seen a loss. Bitcoin price lost almost 1.5% in the last 24 hours while the main altcoin, Ethereum, lost its level of $1,600.

At press time, Bitcoin is selling at $22,656 after falling 1.2% in the past 24 hours. Ethereum also lost 4.57% in the space of a day and is now trading at $1,553.

Why is the price of Bitcoin falling?

The last three weeks of January have been exceptionally good for cryptocurrencies. Nevertheless, having now become the flagship currency, Bitcoin is gradually making a downward movement which is considered very unusual given its performance over the past few days. This also points to investors who have become less bullish on bitcoin price developments.

It is a known fact that Bitcoin and other large cap cryptocurrencies are highly correlated to tech stocks. Hence, this becomes one of the reasons why Bitcoin and other cryptocurrencies are showing a loss today.

Second, the crypto market may react to the upcoming fourth-quarter US gross domestic product (GDP), which is expected to be released on Thursday.

Third, market pundits point to hedge funds entering short positions. Next, the volatility in the crypto market could be due to Microsoft’s cloud outage affecting investor sentiment. Finally, traders anticipating monetary policy easing in the coming days may have caused volatility in the crypto market.

However, next week’s Fed meeting should give these cryptocurrencies a much-needed boost if the inflation rate declines.

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