Feb 17, 2023
Bitcoin Reaches 6-Month Highs on Positive U.S. Data
Cryptocurrency traders are feeling the gains this week as Bitcoin (BTC) continues its impressive comeback after weeks of consolidation. BTC/USD hit $24,895 on Feb. 16, its best since mid-August 2022, as the world’s largest cryptocurrency is driven by a combination of factors.
The macroeconomic tailwinds, particularly from the U.S., have come hand in hand with improving sentiment across risk assets, giving optimists the edge. BTC/USD gained almost 10% on Feb. 15 and another 2% on Feb. 16, with altcoins following suit.
The gains come in a key week of U.S. macroeconomic data prints, these so far feeding the narrative that inflation is ebbing — an important prerequisite for risk asset performance. Consumer Price Index (CPI) mostly conformed to expectations and Retail sales and manufacturing numbers further boosted the outlook.
The positive U.S. macro data emboldens Bitcoin bulls and investors are providing more “dry powder” for risk trades, sending crypto higher. With more data still to come, the market is waiting to see if the good news will continue and whether it can sustain the latest innings of Bitcoin’s blistering 2023 comeback.
Interestingly, Bitcoin is climbing in tandem with the U.S. dollar, which is traditionally negatively correlated. Short-term treasury yields have moved higher, resulting in capital flowing into the U.S., and increasing worldwide liquidity is also pushing BTC higher.
The whales are also playing an important role in the rally, as they are constantly in touch with order book activity and taking advantage of the opportunities to influence the market. The Binance BTC/USD order book showed $25,000 strengthening overnight, with crucial support also inching higher to $21,600.
The crypto market is now looking to the next big move, with some analysts predicting a break of $25,000 and potentially reaching $30-35,000 for Bitcoin. NFTs are also gaining traction as a way to promote crypto and the web3 space. NFT marketing agencies are using Twitter to promote NFTs and help people sell them. Web3 agencies are also providing services to help crypto companies promote their projects. It is an exciting time for the crypto space and investors are looking forward to the next wave of growth.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
