Bitcoin price and Ethereum prediction; Factors that could propel BTC and ETH to new highs

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Bitcoin and Ethereum are two of the most popular digital assets in the world, with their prices having seen a huge increase since their inception. As more and more people become interested in cryptocurrencies, it is important to understand what factors could propel Bitcoin and Ethereum to new heights.

This article will discuss the various factors that could affect the prices of these two popular digital currencies, including fundamental and technical analysis.

In the past 24 hours, the crypto market capitalization increased by 1.45% to $1.71 trillion, while trading volume decreased by 7.81% to $79.382 billion. of dollars.

DeFi’s market share in 24-hour cryptocurrency trading volume was around 0.01% with a total of $9.84 billion. However, stablecoins were up 99.99% at $79.82 billion and Bitcoin led the market by 41.65% at the time of writing, trading at $37,527.19 today.

Factors that could propel BTC and ETH to new highs

Over the coming week, crypto investors will be watching the US Federal Funds Rate and US Non-Farm Payrolls numbers closely.

US Federal Funds Rate and FOMC

February 1 marks an eventful week for central banks as the Federal Open Market Committee (FOMC), Bank of England (BOE) and European Central Bank (ECB) meet to announce their respective interest rate decisions. ‘interest.

The CME tool FedWatch forecasts a high probability (98%) that the Federal Open Market Committee will raise interest rates by 25 basis points and set the target range for the federal funds rate at 4.75%.

The tough decision to make is whether central banks will proceed with a dovish or less hawkish rate hike. Economic performance since December has been below expectations, as evidenced by retail sales and manufacturing data. Moreover, the components of inflation were weaker than usual.

The average hourly wage has seen a considerable drop while the consumer price index (CPI) for December marked its first negative reading since May 2020. Central bankers have been active over the past month and most of between them forecast a 0.25% rate hike this week and possibly another 0.25% hike in March.

Is it possible that the FOMC could point to a 0.25% rate hike this week, while deciding to pause to review cumulative hikes like the Bank of Canada did?

The decision on the rate of return of cryptocurrencies will have a significant impact on their price movement in the market.

US non-farm payroll figures

US non-farm payrolls numbers give an indication of the strength of the economy by tracking total employment outside of agriculture. This data is used by traders to decide when to buy or sell cryptocurrencies and other digital assets. The current choppy session in the crypto market may turn into a volatile market when the US NFP numbers are released next week.

After a downward-adjusted increase of 256,000 in November and topping market forecasts of 200,000, the U.S. economy added 223,000 jobs in December 2022, the fewest since December 2020. Payroll employment increases totaled 4.5 million in 2022, an average of 375,000 per month, compared to 562,000 in 2021 and 168,000 in 2019.

The labor market is gradually returning to normal following the shock of the epidemic, and the report shows that hiring is slowing, although it remains strong.

According to Fed projections, the labor market will remain tight in 2023, but job creation will stagnate and the unemployment rate will climb to 4.6%.

Amid rising interest rates, sluggish consumer demand and a global economic slowdown, many big tech companies have already announced major layoffs.

bitcoin price

As of today, the current Bitcoin price is around $23,223 and its 24-hour trading volume is around $17 billion. According to CoinMarketCap, it has a market capitalization of $447 billion and ranks 1st. There is a circulating supply of 19,275,881 BTC coins with a maximum supply of 21 million BTC coins.

Bitcoin’s technical outlook hasn’t changed significantly recently, as BTC/USD continues to trade in a narrow range between $22,900 and $23,400. If the value of Bitcoin drops below $22,900, the market can be expected to take a downtrend, possibly going as low as $22,400.

If it continues to decline to $21,750, we could see an even more bearish trend.

Bitcoin price chart – Source: Tradingview

At the moment, Bitcoin’s immediate resistance level is set at $23,250. If it manages to break above this point, the cryptocurrency can reach a high of $23,900 and even $25,150.

Buy BTC now

Ethereum Price

Ethereum is currently trading at $1,593 and has seen an increase of 0.50% in the last 24 hours with a total trading volume of $6.8 billion. It is ranked 2nd on CoinMarketCap, with a live market capitalization of $195 billion.

Over the course of four hours, ETH/USD traded choppy, holding just below $1,600. The close of the candles below this level is likely to increase the downward pressure on Ethereum. Additionally, Ethereum has formed a symmetrical triangle pattern, which indicates investor indecision.

Ethereum price chart – Source: Tradingview

At the bottom, support is present at $1,560, and a break below this level could take ETH towards $1,500. Conversely, a bullish break above the $1,625 level could send ETH towards the $1,680 mark.

Buy ETH now

Bitcoin Alternatives

The top 15 cryptocurrencies for 2023 have been rated by CryptoNews Industry Talk. There are many alternative projects worth investigating if you are looking for a better potential investment opportunity.

New altcoins and ICO projects are added to the list every week.

Disclaimer: The Industry Talk section features information from crypto industry players and is not part of the editorial content of Cryptonews.com.

Find the best price to buy/sell a cryptocurrencyCryptocurrency Price Tracker – Source: Cryptonews

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