Bitcoin (BTC), the leading cryptocurrency in the world, dropped to the $28,000 level from the $28,300 level on Thursday. Bitcoin’s previous upward rally slowed after gaining 20% in March, its biggest month since January.
Bitcoin reached a high of $29,173 in March, but it was a short-lived spike. In the meantime, the Ethereum price dropped from $1,941 to $1,870 on Thursday. However, it increased by 10.6% in March and by 56% this year.
Although, traders seem to be hesitant to place any strong bids in BTC as investors awaited the release of the US non-farm payroll data, which is set to be released on the day.
However, the US non-farm payroll data release will likely significantly impact the cryptocurrency market as it is considered a leading economic indicator.
If the US non-farm payroll data shows that the US country’s economy is creating jobs at a healthy rate, this will be viewed as a positive indicator of the overall health of the economy. Thereby, investors will likely gain confidence in the economy and increase their investments in various assets, such as cryptocurrencies like Bitcoin.
In contrast to this, if the data reveals weaker job growth than expected, it may lead to decreased investor confidence and a sell-off in different asset classes, including cryptocurrencies.
Furthermore, upgrading Ethereum to a more efficient “proof-of-stake” algorithm will likely impact the cryptocurrency market, including Bitcoin and Ethereum.
If this upgrade is successful, it will push more people to use Ethereum, boosting demand and raising the cryptocurrency’s price.
Global Cryptocurrency Market Drops Amid Investors Fear Government Action.
The global cryptocurrency market has been doing well in recent months, reaching a value of $1.20 trillion. However, it dropped to $1.18 trillion soon after because traders felt uncertain about the crypto future.
Investors are worried that the government may take further action against the crypto market, leading to volatility in the market. Investors are closely watching any news or events that may impact their investments.
Banking Sector Instability Boosts Bitcoin’s Performance.
As we previously stated, 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.
Thus, the banking sector’s instability has played a major role in Bitcoin’s impressive performance in 2023. This trend will likely continue as more people seek secure and decentralized financial options.
Grayscale Discount Recovers – Eyes On BTC Price
We all know that Grayscale Bitcoin Trust (GBTC) had a rough end to 2022, with its sister company, Genesis Trading, filing for bankruptcy. This caused the GBTC discount to climb to almost 50%, meaning that the trust was trading at a much lower price than BTC’s spot market price.
Interestingly, the GBTC has been recovering in 2023, with the discount shrinking slowly but steadily over the year’s first quarter. As of April 5, the discount was at 36.9%, which is a significant improvement from the high of almost 50% in December 2022.
However, closing the discount gap was seen as a good indicator for Bitcoin as it shows that investor confidence in GBTC is returning. This is important because GBTC holds over 600,000 BTC with the Coinbase Custody service, and uncertainty surrounding the trust last year caused the Bitcoin price to suffer.
Thus, the recovery of the GBTC discounts indicates that the crypto market is rebounding, 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.
The ongoing struggle between optimistic bulls and pessimistic bears persists as Bitcoin remains confined within a limited trading range between $27,600 and $28,900.
According to technical analysis, the BTC/USD pair demonstrates a bearish trend. Nevertheless, it could face resistance near the $28,250 level.
Bitcoin Price Chart – Source: Tradingview
If Bitcoin manages to break through this resistance level, its value might rise to $28,900 or potentially $29,250.
Conversely, if a descending trajectory prevails, substantial support is expected around the $26,500 and $25,500 marks.
Top 15 Cryptocurrencies to Watch in 2023
To stay up-to-date with the latest ICO projects and altcoins, it’s advisable to regularly consult the expert-curated list of the top 15 cryptocurrencies to watch in 2023. This will help ensure you remain well-informed about emerging trends and opportunities in the crypto market.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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