Bitcoin (BTC), the world’s top cryptocurrency, fell from $28,300 to $28,000 on Thursday. Bitcoin’s previous bullish rally slowed after gaining 20% in March, its biggest month since January.
Bitcoin peaked at $29,173 in March, but it was a short-lived surge. Meanwhile, Ethereum price fell from $1,941 to $1,870 on Thursday. However, it rose by 10.6% in March and by 56% this year.
However, traders appear reluctant to place strong bids in BTC as investors await the release of US non-farm payrolls data due to be released later that day.
However, the release of US non-farm payrolls data is likely to have a significant impact on the cryptocurrency market as it is considered a leading economic indicator.
When US jobs data shows that the US country’s economy is adding jobs at a healthy pace, it is taken as a positive indicator of the overall health of the economy. As a result, investors are likely to gain confidence in the economy and increase their investments in various assets such as cryptocurrencies like Bitcoin.
On the other hand, if the data shows weaker-than-expected job growth, it can lead to a drop in investor confidence and a sell-off across various asset classes, including cryptocurrencies.
Additionally, Ethereum’s upgrade to a more efficient “Proof-of-Stake” algorithm is likely to impact the cryptocurrency market, including Bitcoin and Ethereum.
If successful, this upgrade will attract more people to use Ethereum, boosting demand and increasing the price of the cryptocurrency.
Global cryptocurrency market plummets as investors fear government action.
The global cryptocurrency market has performed well over the past few months, reaching $1.20 trillion in value. However, it soon fell to $1.18 trillion as traders felt uncertain about the crypto future.
Investors are concerned that the government may take further action against the crypto market, which could lead to volatility in the market. Investors keep a close eye on any news or events that could affect their investments.
The instability of the banking sector boosts the performance of Bitcoin.
As mentioned earlier, Bitcoin has performed very well in 2023 and the reason for this could be attributed to several factors including instability in the banking sector.
As the banking industry experienced turmoil, many investors began to see bitcoin and other cryptocurrencies as more attractive options than centralized monetary systems.
Hence, the instability of the banking sector has played a major role in Bitcoin’s impressive performance in 2023. This trend is likely to continue as more people seek secure and decentralized financial options.
Grayscale rebate recovers – eye on BTC price
We all know that Grayscale Bitcoin Trust (GBTC) met a hard end until 2022 when its sister company Genesis Trading filed for bankruptcy. This caused GBTC’s discount to increase to nearly 50%, meaning the trust was trading at a much lower price than BTC’s spot market price.
Interestingly, GBTC has recovered in 2023, with the discount slowly but steadily shrinking in the first quarter of the year. On April 5, the discount was 36.9%, a significant improvement from the nearly 50% peak in December 2022.
However, the closing of the discount gap has been seen as a good indicator for Bitcoin as it shows investor confidence in GBTC is returning. This is important as GBTC holds over 600,000 BTC on the Coinbase custody service and uncertainty surrounding confidence has weighed on bitcoin price over the past year.
Thus, the rebound in GBTC rebates indicates that the crypto market is recovering and investor interest in Bitcoin is gradually increasing. Therefore, this news is a positive development for Bitcoin as it could increase investment and growth in the cryptocurrency market.
bitcoin price
The ongoing battle between optimistic bulls and bearish bears continues as Bitcoin remains confined to a limited trading range between $27,600 and $28,900.
According to technical analysis, the BTC/USD pair is showing a bearish trend. Still, it might face resistance near $28,250.
Bitcoin price chart – Source: Tradingview
If Bitcoin manages to break this resistance level, its value could surge to $28,900 or possibly $29,250.
On the other hand, if a downtrend prevails, significant support is expected around the $26,500 and $25,500 levels.
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Top 15 Cryptocurrencies to Watch in 2023
To keep up to date with the latest ICO projects and altcoins, it is advisable to regularly consult the expert-curated list of the top 15 cryptocurrencies to watch in 2023. This will help keep you abreast of emerging trends and opportunities in the crypto market.
Disclaimer: The Industry Talk section features insights from crypto industry players and is not part of Cryptonews.com editorial content.
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