Feb 17, 2023

Bitcoin Soars to 6-Month Highs on U.S. Macro Tailwinds

The crypto markets are experiencing a wave of bullish sentiment this week as Bitcoin (BTC) continues to surge to six-month highs. On Feb. 16, BTC/USD hit $24,895 — its best since mid-August 2022 — with altcoins following suit.

The gains come as a combination of macroeconomic tailwinds, particularly from the United States, and improving sentiment across risk assets, give optimists the edge. BTC/USD gained almost 10% on Feb. 15 and another 2% on Feb. 16.

The rise is being buoyed by a series of U.S. macroeconomic data prints, which have so far indicated that inflation is ebbing — an important prerequisite for risk asset performance. This includes the Consumer Price Index (CPI), retail sales, and manufacturing numbers.

“After a stampede for 10%, BTC bulls ran into a wall,” Keith Alan, co-founder of monitoring resource Material Indicators, summarized. “Clean rejection on the first test of key Weekly MAs. A hot Jobless Report could strengthen another attempt. Looking for a partial retrace to deliver another setup to scalp the volatility around the U.S. economic reports.”

Alan referred to the 50-week and 200-week moving averages (MAs), the latter providing clean resistance since the middle of last year.

An interesting dynamic is taking place between the U.S. dollar and Bitcoin. Traditionally negatively correlated, the two assets are both benefiting from the current climate — but for different reasons.

Dr. Jeff Ross, founder and CEO of Vailshire Capital Management, explained that short-term treasury yields have moved higher, resulting in capital flowing into the U.S. “BTC going higher because of increasing worldwide liquidity,” he added.

However, some traders are concerned about how long the out-of-character status quo might continue. Mark Cullen, a trader, warned that markets are starting to bifurcate, with Tradfi & $DXY not supporting the move.

Meanwhile, Bitcoin whales are taking advantage of the current conditions to influence the rally. Whales are constantly in touch with order book activity, and current conditions have seen bid and ask liquidity move up and down the order book — taking spot price with it.

Cointelegraph contributor Michaël van de Poppe argued that corrections are relatively short-lived in an upwards trending market. “Breaking $25K and we’ll continue towards $30-35K for Bitcoin,” he added.

The crypto market is currently in a state of flux, with the success of BTC/USD and other cryptocurrencies dependent on the U.S. macroeconomic data prints. As investors continue to seek out the best opportunities for risk trades, the web3 space is likely to see further growth and promotion.

NFTs, in particular, have emerged as a popular way to promote and sell digital assets. NFT marketing agencies have sprung up to help creators and businesses capitalize on the trend, offering services such as Twitter NFT marketing, NFT promotion, and web3 agency services.

For now, the crypto market is awaiting the release of the U.S. unemployment data, which could send a signal to the market that the Fed’s restrictive economic policy is working and that a turnaround could come sooner rather than later.

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.