As of late, both Bitcoin (BTC) and Ethereum (ETH) have been coasting in the market, with their values remaining at or over $20,000 and $1,500, respectively. The total value of all cryptocurrencies on the market has increased as a result, reaching $1.05 trillion, a gain of 0.91 percent in only the previous 24 hours.
Nevertheless, it seems that traders are hesitant to make any substantial offers until after the US Federal Reserve’s statement. In addition to discussing the current FOMC and Fed rate in the United States, this post will also forecast the price of Ethereum and Bitcoin.
The cryptocurrency markets have remained steady and showing signs of growth since the beginning of the year, which may be due to the Federal Reserve’s possible dovish position.
In addition to the forthcoming interest rate rise by the Federal Reserve, an agreement reached by DekaBank with Metaco to begin distributing digital assets to institutions will have a major influence on the cryptocurrency market.
FOMC and Fed Rates Up Next
After starting the day on a downward trend owing to reports of easing wage pressures, the US dollar steadied as traders awaited the outcome of a Federal Reserve policy meeting.
It is anticipated that the Federal Reserve of the United States will raise interest rates by 0.25 percentage points on Wednesday. However, traders will be watching Chairman Jerome Powell’s press conference for clues about the Fed’s long-term stance toward policy change in the hopes of gleaning additional information.
The Dollar Index, which measures the greenback’s strength against a basket of six major currencies, however, fell 0.029% to 102.060. During the previous trading session, the market dropped by 0.16% as investors reacted negatively to the news that wage increases in the United States had slowed to their annual low during the previous quarter.
The choices made by the European Central Bank and the Bank of England this week will be closely watched by investors. Investors should keep up with both of these organisations on Thursday, since they are both expected to increase interest rates by 0.5%.
Consistent dollar decline was also considered as a key factor that kept bitcoin prices high.
German Financial Institution to Offer Cryptocurrency Services
The 105-year-old DekaBank has $428 billion in assets, and they’ve committed to work with Metaco to start selling digital assets to institutions. In a press statement dated January 31st, Metaco announced that its Harmonize technology will be used by DekaBank for “custody and orchestration.”
The custody platform is very important for DekaBank, and as a direct result, the launch of the platform had a big impact on the cryptocurrency industry as a whole, including Bitcoin. This is a very significant advancement since it indicates that Metaco will now have a centralised platform from which they can monitor all of their digital asset activity.
Why It Appears That More Risk Is Being Taken in the Cryptocurrency Markets?
Because of the investment of $117 million, the largest sum since July of last year, in crypto-based investment products, the global cryptocurrency market has continued its positive trend and earned fresh bids around the $1.05 trillion barrier. This is due to the fact that between January 21 and 27, the most amount of money that has been invested in crypto-based investment products since July of last year.
Additionally, the good pronouncements about cryptocurrency legislation also had a huge influence on the crypto market attitude. Moving ahead, investors tend to be wary about making a significant offer until the Federal Reserve policy meeting is ended.
Bitcoin Price
As of now, Bitcoin price is at $22,993.90 with a 24-hour trading volume of $22b. It has gained by 0.25% in the previous 24 hours, putting its position at 1st on the CoinMarketCap rankings with a market value of $443b.
Nevertheless, the immediate barrier for the BTC/USD pair remains around the $23,300 level, and a breakthrough above this level has the ability to move the BTC/USD pair into the next resistance region of $23,920. On the 4-hour period, Bitcoin is trading with no evident bias as the market awaits the Federal Open Market Committee and Federal Reserve rate announcements.
Leading technical indicators like the RSI and MACD have moved into selling territory, and the 50-day simple moving average is also pointing to a downward trend in the market.
On the negative side, it is anticipated that an upward trendline will provide support for Bitcoin close to $22,750. A bearish breach of this level may give more chance for selling until it reaches $22,350.
The Price of Ethereum
Today, the price of Ethereum was recorded at $1,572.48 and it had a trading volume of $6.2 billion over the course of the preceding twenty-four hours. Since then, its value has decreased by 0.03%, bringing its total market value down to $192 billion and placing it in position 2 on CoinMarketCap.
If Ethereum manages to reach the double-bottom support level of $1,540, the study of technical data suggests that the price might experience a favourable change for the better. Upside pressure remains as $1,600 represents substantial hurdle. If this obstacle is overcome, the price of ETH might reach about $1,625 in the near future.
If support at the $1,540 level falls, it might open up a further slide in price till the $1,500 barrier.