"On Assault." Experts predicted bitcoin exchange rate movements

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Author: Robert Strickland
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"On Assault." Experts predicted bitcoin exchange rate movements
Interviewed experts commented on the current state of the crypto market and evaluated its future prospects

The rate of bitcoin rose to $23.6 thousand during a speech of Fed chief Jerome Powell at the Economic Club in Washington on February 7 evening. The asset value rose from $22.9 thousand to $23.6 thousand in half an hour, and within the next 30 minutes, it fell to $22.8 thousand again. Powell said that inflation in the United States is beginning to decline, but added that further interest rates may be necessary.

Despite the sharp fall in the rate of bitcoin by the end of the speech of the head of the Fed, at the end of the night, the price of the first cryptocurrency was above $23 thousand interviewed experts commented on the current state of the crypto market and assessed its future prospects.

  • "It's worth being prepared for increased volatility."

Exmo.me CEO

Powell's speech caused a lot of volatility. In a short period of time, the price of bitcoin first rose to $23,337, then immediately fell to $22,800, and then went back above $23 thousand. Such "dispersion" is associated with ambiguous statements of the head of the Fed. Powell also said that he expects inflation to fall substantially in 2023, a move that has had a positive effect on risky assets. However, a little later the Fed chief said that if the unemployment trend continues (the US labor market is very strong at the moment), the Fed will raise rates harder - this is not the peak of monetary policy tightening.

The speech gave a rather ambiguous message, which was reflected in bitcoin pricing. On top of that, short-term traders added oil to the fire, which stimulated the movement in different directions. A few hours later the quotes calmed down and became more predictable.

At the moment there is an accumulation zone in a narrow price range, the price is "stuck" at the level of $23 ths. Most market participants expect correctional movement down to $22 ths and then a breakthrough to $25-26 ths. So, you should be prepared for higher volatility on February 14, which is what the markets are preparing for us on Valentine's Day.

As for crypto-trends, not so long ago became popular ChatGPT - a chat-bot with artificial intelligence, developed by OpenAI. AI-based solutions have become a new trend in early 2023.

Coins of blockchain projects that involve AI turned out to be a group of the most successful in terms of crypto-assets investment. Everyone was surprised by SingularityNET (AGIX), which grew by 744.6% in just one month. By the way, the project is based on Cardano blockchain, which also adds positions to its ADA coin. Not so long ago Cardano launched its own algorithmic stablecoin Djed, the project is firmly in the top three among the crypto-projects in terms of developer activity. All these factors attract attention to ADA and it shows excellent results.

A new trend in the market. Why AI coins are skyrocketing in value

Other AI-related coins have also grown noticeably, including Fetch.ai (FET), DeepBrain Chain (DBC), and Vechain (VET) - these are promising projects, but you should consider the risks before adding them to your portfolio. Among the "old guys" you can also see good results: Litecoin (LTC) shows a steady upward movement. Overall, the entire cryptocurrency market has gained 30% or more since the beginning of the year.

  • "The cryptocurrency market will continue to experience positivity."

head of trading platform Sryptorg

Bitcoin has almost completely repeated the movement of the S&P 500 index. I see further growth opportunities for the index, which means that the crypto market will continue to be positive. There will be corrections, but we see them being greedily bought back. For bitcoin, I would like to see a target level of around $25,100.

The crypto market is interesting because every year there are new interesting trends. This year there is already a trend - projects that claim to work with artificial intelligence. There is a feeling that at least half of them do not really have anything to do with AI, but they talk about it very convincingly, and therefore it is also possible to make money on it. But in the end, as always, the real working projects will "shoot" and the temporary phenomena will be eliminated by themselves.

  • "Buyers can go on the offensive."

BitRiver financial analyst 

Bitcoin rose 2.1 percent to $23,240 amid a rebound in the S&P 500 index and a decline in the dollar index. Increased volatility on exchanges and interest in risky assets was seen at 20:40  during the speech of Federal Reserve Chairman Jerome Powell at the Economic Club in Washington, DC. Jerome Powell noted that 2023 will be the year of a significant decline in inflation, and next year it will definitely come down to 2%.

His comments bolstered investor hopes for a less aggressive policy, which had faded after Friday's U.S. jobs report. There were slight swings during the speech as he said that the regulator will raise rates more than expected if the labor market and inflation reports continue to be strong.

Buyers manage to hold positions around $23k. The effect of the strong Non-Farm Payrolls report (US non-farm payrolls data) is waning.

Bitcoin has a bullish "golden cross" signal on the daily timeframe (the 50-day average exceeded the 200-day average). This indicates a continuation of the upward movement. By the end of the week, the buyers may go for the assault on the level of $25 thousand. After a successful breakthrough, we should expect the price to accelerate to the zone of $26,000 - $26,200.

 

 

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