Bitcoin’s price is under pressure after algorithmic stablecoin terraUSD collapses in 2022 and lender Celsius and hedge fund Three Arrows Capital file for bankruptcy.
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U.S. stock indices closed higher on Thursday, Futures were higher on FridayBitcoin is closely correlated with the US market, which often goes up at the same time as stock indices rise. Bitcoin also tends to rise when the dollar weakens.
Bitcoin has been trading between about $18,000 and $24,000 since June and has failed to break that pattern.
Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, said Friday’s rally could be a “bearish retest” for prices between $22,500 and $23,000.
“So, unless it closes by breaking above that level convincingly, I still think this is a bearish rally with the potential for further range and downside,” said Ayyar. said Mr.
Bitcoin has fallen more than 60% this year from its November high as the US Federal Reserve (Fed) aggressively raised interest rates in an effort to focus on risky assets such as cryptocurrencies.
The crypto market is also taking a hit Failed projects and famous bankruptcies It’s spread across the industry.
The crypto market Major network upgrade to Ethereum called MergeProponents say it makes blockchain more efficient.
The integration is expected to be completed by mid-September.
Prices for events are Ethereum’s native token, Ether, far surpasses Bitcoin..
Financial markets are also looking for signs that inflation will ease when the US Consumer Price Index reports next week. Investors are also watching for signals about the Fed’s rate hike path.
On Thursday, Fed Chairman Jerome Powell said: ‘strongly committed’ to fighting inflationsuggesting further rate hikes are likely to come.
Yuya Hasegawa, crypto market analyst at Japanese crypto exchange Bitbank, said bitcoin could test the $22,000 level if inflation cools and an Ethereum merger is expected. but also presented a warning.
“Given what some Fed members, including Chairman Powell, have said this week, over-optimism could be dangerous,” Hasegawa said in a note on Friday.