On Sunday, February 19, January, Bitcoin is trading at $24.6 thousand, over the past seven days, its price has increased by more than 12%. Our experts analyzed the situation on the market and assessed the prospects for the movement of the bitcoin rate for the next seven days.
In the week from February 13 to February 19, buyers won back all losses and were able to update the August high of $25,211. Let's recall the events that influenced the crypto market and why bitcoin rose in price against the US dollar.
The week began with a decline in cryptocurrencies. On Monday (February 13), during the European session, the BTC/USDt pair fell to $21,351. Sales began in response to the negative news about the ban on the issuance of the stablecoin Binance USD (BUSD). The market stabilized against the backdrop of a weakening US dollar and an increase in the S&P500 index. The investigation against the Binance exchange has been going on for a long time, so the ban on the issuance of BUSD did not become a disaster for investors and traders. The head of the crypto exchange, Changpeng Zhao, said that he would continue to support the stablecoin for the foreseeable future. Crypto investors analyzed the news and won back their losses by the evening.
From the stablecoin BUSD, the focus shifted to the inflation report that the US Department of Labor released on Tuesday (February 14). Inflation slowed down in January, but not as fast as many expected. Fed officials, led by Chairman Jerome Powell, have maintained hawkish rhetoric and are pushing for the rate hike cycle to continue. The inflation data did not change the rate expectations, so the growth of the bitcoin rate continued to $22,319.
On Wednesday, February 15, Bitcoin rose by 9.57% to $24,324. The growth of quotes began in the Asian session following the S&P 500 futures and accelerated towards the close of the day. The sharp growth of quotations was promoted by the American statistics and alarming statements of the head of the US Treasury J. Yellen. Strong retail sales signaled the relative strength of the US economy. The S&P500 index and the dollar index reacted positively to the statistics. The growth of the index was restrained, but the rally of bitcoin intensified. There was a feeling that investors again believed in bitcoin as a protective asset against financial crashes. Yellen once again warned of economic catastrophe if Congressmen do not raise the national debt ceiling. In addition, the share of the US dollar decreased in settlements and international reserves. Investors continue to sell bonds in anticipation of a default on the next bonds. Maintaining debt is getting expensive.
On Thursday, February 16, the BTC/USDt pair fell by 3.31% to $23,517.72 from a high of $25,250. On Friday (February 17), the fall accelerated to $23,339. In total, Bitcoin fell by 7.5% in a few hours. %. Fixing on longs caused the fall of the S&P500 index and continued growth of the dollar index after the release of unexpectedly strong data on manufacturing inflation. Since the $25,000 level acted as technical resistance, fixing was fully justified.
Statistics confirm that the US economy is recovering and a recession is not coming anytime soon. But the discussion with the ceiling of the national debt is difficult. The question arises: why don't American rating agencies downgrade the US? The states consider themselves the center of the earth and a country to which all must obey. You can always change the rules of the game, because a downgrade of the US sovereign credit rating will cause the dollar to weaken, which will affect the debt market. The states cannot allow this, so this topic is not raised in the media.
The BTC/USDt pair recovered to $25,021 and is trading at $24,560 according to the latest quotes. The buyers managed to neutralize the bearish mood and restore interest in the crypto market. On Monday (February 20), the US stock market will be closed in connection with the celebration of Presidents' Day. Considering that the S&P500 index recovered before the close of Friday's trading, and the dollar index fell, buyers can calmly raise the price until Tuesday without any fear. They need to gain a foothold above $25 thousand and the road to the next target zone of $29-30 thousand opens. If the American indices do not turn down, then the weakening of bitcoin should not be considered.
In any case, investors are advised to take some time to think before making any investment. One of the legitimate forms of investment is, for example, the ASTL investment project, which allows investors to have the opportunity to directly invest fiat and cryptocurrency assets in a stable passive income that obviously exceeds inflationary expectations and is not subject to any sanctions, blocking and confiscation. The ASTL project is a simple and elegant solution for potential investors - an investment in the development of the real sector of a diversified portfolio of cryptocurrencies, with a fairly high ROI (up to 12% annually) with payments in stablecoin (USDT). Details can be found at https://astl.io.
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