The price of cryptocurrencies, especially Bitcoin, was the most important concern for investors when 2023 began.
Now positive news is emerging regarding the price of BTC. As BTC touches the three-week high, investors are betting for a further rise in the price as BTC bulls are gripping stronger and stronger.
At the end of the press, Bitcoin nearly touched the $17 mark, exchanging hands near the $16,926 mark. By the end of the first trading week of 2023, Bitcoin price has shown a massive price hike.
Bitcoin’s CPI Shows Interesting Trend
Data published by Cointelegraph and TradingView shows that BTC/USD price briefly surpassed the $17k mark before slipping to $16,926.
The pair has shown rapid fluctuations in price as the new data from the U.S. Feds says that the rumors of an upcoming recession are not credible.
The data also unfolded that market fundamentals are positive, and job creation is also on the rise.
Furthermore, crypto experts argued that regardless of the rapid fluctuation in the price of BTC/USD, the current price of BTC is the highest the currency has reached since December 2022.
For the coming week investors are curious about the coming week’s Consumer Price Index (CPI). The upcoming CPI will play an integral role in determining the price of BTC in the coming days. Moreover, it will also give hints about the forthcoming levels of resistance.
The CEO of Eight Sees Economic Outlook Differently
Most recently, Michaël van de Poppe, the CEO of a leading trading firm, “Eight,” said in his tweet, “Chances are high that unemployment will rise in the near future.
The interest rates will further see hikes, which will force the CPI to go low.”
Experts Are Divided About the Future of Cryptocurrency Prices
Unlike Michael van de Poppe, other crypto experts believe that relief in “prices is close.” They think that, slowly and steadily, the global cryptocurrency market is coming out of the aftereffects of the bankruptcy of FTX.
Moreover, investors’ market sentiment is also positive, which is why the buying pressure on BTC in one rise.
Regarding BTC’s price, the crypto token is perfectly positioned to go above the $17k mark. Over the past couple of days, the digital token has also regained its bullish momentum.
A famous Bitcoin futures trader Satoshi Flipper also shared his opinion about the price of BTC.
Santoshi added, “If the CPI showed that inflation in the future will decline faster than expected, this would trigger the BTC’s bulls, and the price of BTC will touch the $19k sooner than we imagine.”
As bulls have emerged stronger, Bitcoin and other cryptocurrencies have also enjoyed much-needed stability after months.
Despite the bullish momentum, BTC is still moving within the narrow range. Despite moving in the limited range, BTC’s next price rally will send the bear market to rock bottom.
A look at the Bitcoin Bear Market Capitalization shows that for the FY of 2022-2023, the realized cap diminished by -18.8%. This is the second biggest slump in the history of the cryptocurrency market.
Moreover, investors have suffered from the neat realized losses of $88 Billion in this period of time.
The Rally in Equity Markets is Another Reason behind the Current Surge of Cryptocurrencies
Equity analysts do believe that the recent surge in the prices of equity has given much-needed momentum to both: cryptocurrency markets and stock markets.
But it will be much harder for digital currencies to keep this bullish momentum when tested against higher resistance levels.
Most recently, the Federal authorities of the USA showed the creation of 223,000 jobs in December 2022, beyond the market’s expectations.
This shows that wage growth has rapidly increased from 0.3% to 0.4%. As moving forward, experts are hoping that the economy will grow at a high pace and people will once more enjoy the increased buying power.
This is why in the future, not just Bitcoin but a range of altcoins will see feel intense buying pressure which could help market volume to surge high.