Feb 04, 2023
Crypto Party Halted by U.S. Dollar Rebound
Cryptocurrency markets took a hit on Feb. 3, with Bitcoin (BTC) dropping to $23,329 on Bitstamp. This followed a second trip above the $24,000 mark at the Feb. 2 Wall Street open, with buyers unable to sustain the momentum. The main culprit behind the dip was a rebound in U.S. dollar strength, with the U.S. Dollar Index (DXY) putting in a conspicuous bounce, which began to consolidate on the day.
Popular trader Crypto Tony warned that “once the DXY dollar finds support and begins to bounce hard, then we will see pullbacks on our Crypto bags. Time to pay attention.” Cointelegraph contributor Michaël van de Poppe predicted that a level of 102 for DXY would spark inversely-correlated drops across risk assets. Matthew Dixon, founder and CEO of crypto rating platform Evai, agreed and added that he expected “Btc and Crypto [to] move down a touch before a final ‘blowoff’ high (not much higher imo).”
The next U.S. Consumer Price Index (CPI) print, set for release on Feb. 14, could also impact the crypto markets. Trading firm QCP Capital pointed to a potential upside risk to the release, citing the Cleveland Fed’s inflation Nowcast, which is showing a >0.6% print for Jan. The firm also drew attention to a similar reweight in Europe, which has led to a surge in the January CPI released this week.
Meanwhile, according to data from CME Group’s FedWatch Tool, the consensus remained firm over the next rate hike in mid-March being identical to the February one at 25 basis points.
The crypto markets are in a state of flux, with the U.S. dollar, macro market volatility, and U.S. Consumer Price Index all playing a part in the price movements. While the short-term outlook may be uncertain, the long-term potential of the crypto space remains strong. With NFTs becoming increasingly popular, more and more companies are turning to crypto and web3 marketing agencies to promote their NFTs and help them sell. Twitter NFT marketing is a particularly effective way to reach potential buyers, and many companies are utilizing the services of web3 marketing agencies to help them reach their goals.
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.
