Crypto Market’s Outlook for Next Week: Is a Severe Crash Waiting for Traders?
The crypto market has witnessed a severe plunge this week, and traders are now wondering if the market has reached its bottom or if another crash is on the horizon. As several macro events continue to shake the industry, the next week is crucial as several game-changing events will take place, determining the crypto market’s movement in the upcoming week.
Volatile Sessions Will Rule The Market
Today, the crypto market witnessed a massive selloff as investors identified risks after the collapse of the crypto-friendly bank Silvergate. Moreover, President Joe Biden’s proposed budget aims to “reduce mining activity” and could potentially subject crypto miners in the United States to a 30% tax on their electricity costs, resulting in a negative impact on the crypto space’s future.
The U.S. jobs data is under close scrutiny by traders, who are looking for signs of strong growth like in January with a low unemployment rate. Recently, the Labor Department released data showing that the U.S. economy added 311,000 jobs in February, with the unemployment rate increasing to 3.6 percent. The gain in jobs exceeded economists’ expectations, potentially increasing pressure on the Federal Reserve to accelerate rate hikes.
This could result in an extension of rate hikes and a 50-bps rate hike announcement this month. However, doubts over the Fed’s monetary policy in the upcoming months will be clarified after the release of U.S. CPI inflation data on March 14.
Hence, a rate hike after 14 March will eventually bring more volatility for crypto assets and lower the demand from investors willing to invest in the sector.
Bitcoin To Determine Next Week’s Trend
If the Fed comes up with strict monetary policies and rate hikes to combat the high inflation rise, it may significantly affect Bitcoin’s price and plunge the asset with another crash to the $15K level.
As of writing, Bitcoin price trades at $20K, with a decline of over 7% in the last 24 hours. The sharp decline in the BTC price chart has forced other assets to witness a similar meltdown. Over the past day, Dogecoin, Shiba Inu, Solana, and XRP have all experienced losses of approximately 10%, 9.20%, 9.50%, and 8%, respectively. The global crypto market also saw a downturn, falling by almost 8% and dropping below the $1 trillion mark for the first time since mid-January to reach $918 billion.
If the crypto market comes across another bad news next week, it may plunge Bitcoin’s price to December levels near $16K, marking another crash for the industry.
Was this writing helpful?
Shayan is a digital nomad and a professional journalist. He delivers high-quality engaging articles to Coinpedia through his in-depth research and analysis.
Bitcoin Surges By More Than 37% Against US Dollar This Week, Taps $28K On Sunday
Bitcoin reached a high of $28,422 per unit on Sunday at around 3 p.m. Eastern Time as the leading cryptocurrency has continued to rise during the last week. Since last Sunday, bitcoin has increased in value by 37.9% against the U.S. dollar, and the cryptocurrency’s overall market capitalization has swelled to $546 billion.
Global Cryptocurrency Market Valuation Increases by 1.11% to $1.18 Trillion; Bitcoin Dominance Remains Above 45%
At just before 3 p.m. ET on March 19, 2023, bitcoin (BTC) surpassed the $28,000 zone, rising to $28,422 per unit on Sunday afternoon. Presently, the leading cryptocurrency’s value is hovering within that region, at just above $28,300 after meandering just below it at $27,925 per unit. Bitcoin has gained more than 37% against the U.S. dollar in seven days, and over the last 24 hours, it has increased roughly 3.5% higher.
Currently, there are $42.9 billion in global bitcoin trades out of the $203 billion in trade volume among all digital assets in existence. While bitcoin reached a high of $28,422 on Sunday, it also saw a low of $27,009 per unit during the course of the day. Bitcoin has $23.94 billion left to surpass Tesla’s market capitalization of $569.94 billion to become the tenth-largest asset by market valuation.
The global cryptocurrency market valuation was $1.18 trillion on Sunday, a 1.11% increase over the past day. The last time bitcoin was trading above the $28,000 region was in June 2022, following the collapse of the Terra blockchain and UST. Current statistics also show that the second-largest cryptocurrency by market cap, ethereum (ETH), jumped 1.7% higher over the past day and 24.3% over the past week.
Out of the $1.18 trillion in value, bitcoin’s dominance on Sunday is 45.7%, while ethereum’s is 18.8%. Bitcoin’s top ten trading pairs on Sunday include Tether (USDT), BUSD, USD, KRW, EUR, JPY, USDC, TRY, GBP, and CHF. In addition to bitcoin surpassing the $28,000 zone, there is also a small ‘Kimchi premium’ in South Korea, with bitcoin trading for $200 more per unit in the country than most crypto exchanges abroad.
Tags in this story
Asset, Bitcoin, Bitcoin (BTC), Bitcoin Price, Blockchain, BTC Prices, BUSD, CHF, Cryptocurrency, Digital Assets, ETH, EUR, Finance, gbp, global market, Greenback, investment, JPY, kimchi premium, KRW, market, Market Cap, Market Capitalization, market updates, Market Valuation, South Korea, Tether, Trading Pairs, TRY, USD, USDC, USDT, UST collapse
What are your thoughts on bitcoin’s recent price surge and its potential impact on the overall cryptocurrency market? Share your opinions in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
US Could Be Hit by Potential Hyperinflation Soon-Will Bitcoin’s (BTC) Price Make It to $100K?
The crypto space appears to have relaxed a bit as the prices of the popular tokens have been consolidating within a very narrow range. Bitcoin, the star cryptocurrency, appears to be accumulating gains as it prepares to fly past previous highs very soon. Hence, the altcoins may also begin with a fresh bullish wave as the possibility of the global crypto market cap achieving the milestone of $2 trillion appears to be pretty high.
But how will the BTC price reach $100k? And by when?
The US economy has been badly hit by the ripple effects of the fallout from the major banks in the state. Although customers are assured they will get access to their funds, the stability of the banks continues to remain shady. In the meantime, JP Morgan, a leader in investment banking, raises the possibility of the FED releasing an emergency loan.
As per the reports, the FED may soon inject $2 trillion into the US banking system to stabilize the prevailing crisis. This facility is likely to be used by the largest banks, which may help the centralized banks recover from their losses.
The reserve balances at the FED had depleted, but they spiked since the beginning of 2020 and marked highs during the first half of 2021. This was when the inflation rates began to surge. The rates, which were 1.40% in January 2021, soared to 9.06% in July 2022, which was the highest in the past 42 years!
One needs to take note that this was the time when the crypto markets underwent a massive bull run where Bitcoin prices soared from around $10,000 to as high as $69,000. Now that the FED is preparing to inject $2 trillion into the economy, the dropped inflation rates may rebound and surpass the 2022 highs.
This may be when the US could be hit with hyperinflation, resulting in a bull run in the crypto markets. Many tokens may rise more than 10x to double their ATH as the BTC price is assumed to hit $100K then!
Was this writing helpful?
A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.
Bitcoin (BTC) breaks $25k mark, a day after breaching $24k
- Bitcoin breached the $25,000 mark for the first time since June 2022
- The coin has maintained the upward momentum, which it gained yesterday after breaking past the $24,000 level
Bitcoin (BTC), the king coin, has broken another level within a span of 24 hours. The largest cryptocurrency by market cap breached the $25,000 mark, a day after the coin broke another key level. The coin reached a high of $25,256 on Coinbase, as per the data presented on Trading View. The coin’s price has retracted ever since it peaked at this level.
Read Bitcoin’s [BTC] Price Prediction 2023-24
According to CoinMarketCap, Bitcoin was trading at $24,790 at press time and saw an uptrend of over 8% in the past 24 hours. The cryptocurrency registered a market cap of over $482 billion and had a market dominance of 42.8%.
Notably, the current level of Bitcoin was last seen in June 2022. Additionally, the coin added the additional numbers just a day after it swung past $24,000, a level first seen since August last year.
Speaking about the new breach, Cameron Winklevoss, co-founder of Gemini, stated that Bitcoin’s price levels have surpassed the lows it registered post-FTX collapse in November 2022. At the time, the king coin saw a sharp decline, with BTC’s price collapsing from the $20k level to the $15k level within a few days. Winklevoss said,
“Bitcoin just broke 25k, price levels well above pre-FTX collapse. A clear signal that our industry is moving beyond this painful chapter — we will not be defined by it. We are back to building the future.”
Bitcoin short holders take the losing end
The coin’s rise in the market has left Bitcoin’s short traders on the losing end of the stick. According to Coinglass, the ratio of long/short positions for BTC saw the long position holders topple the short position holders. The ratio was at 1:16, with over 53% of traders taking a long position, and over 46% of traders still holding a short position.
Moreover, over $7 million was liquidated in the past hour. And, the total liquidation of short positions as of February 16 was $26.81 million.
Lumber to gold ratio breaks down, suggesting a risk-off environment
Lumber to gold ratio breaks down, suggesting a risk-off environment James Van Straten · 34 seconds ago Lumber to gold...
Biggest Movers: Cardano Moves To 6-Week High, Climbing By Over 6% On Friday
Cardano moved to a six-week high on Friday, as consumer sentiment in the United States fell by more than expected....
Non-Fungible Token Sales Slid 31% Lower In March With $882 Million In NFT Sales
According to statistics, the number of non-fungible token (NFT) sales in March was 31.42% lower than the previous month, dropping...
XRP Perpetual Futures Open Interest skyrockets to $610 million
XRP Perpetual Futures Open Interest skyrockets to $610 million Samuel Wan · 2 hours ago · 2 min read The...
Bitcoin, Ethereum Technical Analysis: BTC Drops Below $28,000, ETH Under $1,800
Bitcoin was once again trading below the $28,000 level on Friday, as markets consolidated ahead of a key day of...
Bitgo Launches Storage And Tracking Solution For Bitcoin-Based Ordinal Inscriptions
On Thursday, digital asset custody provider, Bitgo, announced the launch of its storage and tracking solution for Bitcoin-based Ordinal inscriptions....
Assessing if Hedera’s U.S. presentation can wind down crypto regulatory heat
The Hedera Hashgraph team spoke to the U.S. delegation about the blockchain ecosystem. Clampdown on the ecosystem remains constant but...
Shibarium testnet achieves an impressive milestone, but what about BONE
Shibarium testnet achieves significant milestones with over 100,000 transactions on Puppynet and 190,000 transactions in total. Despite a recent downtrend,...
Avalanche may have had a solid Q1, but what promise does April hold
The AVAX bullish sentiment has decreased after an impressive all-round performance in March. The Avalanche blockchain experienced a great deal...
SBF hoarded too much data for the FBI to handle
SBF hoarded too much data for the FBI to handle Mike Dalton · 7 seconds ago · 2 min read...
How to Expand a Business: 10 Steps for Cannabis Companies
Congratulations! You’ve made it this far as a successful business owner. That alone deserves a pat on the back. But...
FTX EU opens European withdrawals website
FTX EU opens European withdrawals website Mike Dalton · 29 mins ago · 2 min read The site will solely...
Monero [XMR] bulls defended $152 support- Is $168.8 achievable
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s...
Will Radiant Capital’s RDNT enjoy a bullish course? Binance has an answer
Binance has embraced the first second-generation DeFi lending and borrowing platform. RDNT’s demand was off to a slow start, but...
Axie Infinity [AXS] Price Analysis: 30 March
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice. Indicators pointed to a neutral...
Avalanche Foundation launches NFT initiative
Avalanche Foundation launches NFT initiative Mike Dalton · 4 hours ago · 1 min read The program will support artists...
Binance: Will Bicasso NFTs be the catalyst to BNB’s recovery? Examining…
Binance has launched another free NFT minting event, which was met with overwhelming demand and claimed within five hours. Despite...
Most Crypto Sent From Wallets Sponsoring Russia In Ukraine War Reaches CEXs, Binance, Research Shows
Millions of U.S. dollars’ worth of cryptocurrency has been sent to centralized exchanges (CEXs), most notably Binance, from wallets providing...
Bulgaria1 week ago
Onecoin Head Of Legal And Compliance Charged For Role In Crypto Pyramid
artificial scarcity1 week ago
Biden Administration’s Economic Report Deems Crypto Assets ‘Mostly Speculative Investment Vehicles’
Airdrop1 week ago
Arbitrum Airdrop Goes Live: ARB Price Drops More Than 85%
Analytics1 week ago
Crystal Blockchain Study Reveals $16.7 Billion In Crypto Assets Stolen Since 2011
Asset Purchases1 week ago
Federal Reserve Hikes Rate By 25bps To Keep Inflation At Bay, Aims For 2% Inflation Rate By 2025
@meonbtc1 week ago
Magic Eden Launches Bitcoin Ordinal Inscription Market, Partners With Hiro, Xverse To Bolster Support
Altcoins1 week ago
Crypto Market Myth DEBUNKED: Here’s Why The Fed’s Rate Hikes Won’t Lead To A Collapse
Crypto news1 week ago
Bitmex Outlines Crypto Market Outlook for 2023 – Here’s What Traders Can Expect