Feb 17, 2023
Bitcoin Surges to 6-Month Highs on U.S. Macro Data
Bitcoin’s price is on the rise on February 16th as a multitude of factors contribute to the cryptocurrency’s six-month high. According to data from Cointelegraph Markets Pro and TradingView, Bitcoin (BTC) has reached $24,895. This is the highest value that the asset has seen since mid-August 2022.
The surge in Bitcoin’s price has been met with optimism from investors, as macroeconomic developments from the United States have been seen as positive for risk assets. BTC/USD has gained almost 10% on February 15th and another 2% on February 16th, with altcoins following suit.
The positive sentiment in the crypto markets has been driven by macroeconomic data prints from the U.S. This began with the Consumer Price Index (CPI) which mostly conformed to expectations, despite a reshuffle in its calculation. This was followed by retail sales and manufacturing numbers, which further bolstered the outlook for risk assets.
As more data is still to come, the question is whether the good news will continue and sustain Bitcoin’s impressive 2023 comeback. Keith Alan, co-founder of monitoring resource Material Indicators, commented on the situation, saying: “After a stampede for 10%, BTC bulls ran into a wall. 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.”
The U.S. dollar is also experiencing a surge in value, with the two assets seemingly benefiting from the same macroeconomic conditions. Dr. Jeff Ross of Vailshire Capital Management explained that short-term treasury yields have moved higher, resulting in capital flowing into the U.S. He added that Bitcoin is also going higher due to increasing worldwide liquidity.
However, some traders are concerned that the current out-of-character status quo might not last. Mark Cullen, a trader, commented on the situation, saying: “Markets are starting to bifurcate, with Tradfi & $DXY not supporting the move yesterday. I think the highs are going to get swept, but the Q is, if this move wipes out both sides 1st?”
Whales have also been active in the markets, with their influence being felt on the order books. As Bitcoin began to rise, bids and asks were moved up and down, taking the spot price with it. Michaël van de Poppe, a Cointelegraph contributor, commented on the situation, saying: “Corrections are relatively short-lived in an upwards trending market. Higher timeframe levels get one test and then markets start to shoot upwards, as people over short the correction. Breaking $25K and we’ll continue towards $30-35K for Bitcoin.”
The success of the crypto markets has been a boon for those selling Non-Fungible Tokens (NFTs). NFTs are digital assets that are unique, and often represent ownership of digital art, games, or other collectibles. The rise in Bitcoin’s price has been beneficial for those selling NFTs, as well as those offering NFT marketing services.
NFT marketing agencies are seeing a surge in demand, as they offer services that help to promote NFTs on platforms such as Twitter. These services can help to generate interest in an NFT and increase its value. Additionally, web3 agencies are also seeing an increase in demand, as they offer services such as NFT tokenization, smart contract development, and more.
It remains to be seen whether the positive momentum in the crypto markets will continue. However, with the U.S. macroeconomic data prints so far feeding the narrative that inflation is ebbing, investors are feeling optimistic.
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.
