- After two days of volatility, Bitcoin’s daily trading volumes have surged past $30 billion showing strength.
- Investors will be keeping a watch on the Fed meeting ahead next week and are expecting the third 25-basis points rate hike.
The world’s largest cryptocurrency Bitcoin has regained the lost ground from the buggy Mt. Gox event earlier this week on Wednesday. As of press time, Bitcoin (BTC) is trading 1.73 percent up at a price of $29,482 and a market cap of $570 billion.
However, the recent price volatility in Bitcoin has pushed investors to the edge brewing up confusion as to what could be the next direction of price movement for Bitcoin. With more than 75 percent gains year-to-date, Bitcoin and the broader crypto market have shown strong resilience to the global macro environment as well as the banking crisis in the US and Europe.
Speaking at the opening day of the Consensus 2023 conference, Michael Sonnenshein, CEO of crypto asset management company Grayscale Investments said:
The operative word here is resilience. Despite recent setbacks whether it be trust or certain businesses that were once integral to crypto that are no longer around, what we’re seeing is resilience. It’s really encouraging time and again as this industry gets challenged, it demonstrates its strengths and comes out stronger.
Along with Bitcoin (BTC), other digital assets have also been showing signs of revival today. Ether (ETH) has once again moved above the $1,900 level while Ripple’s XRP is making a move close to $0.50. Cardano’s ADA is holding up above $0.40 while Polygon’s MATIC has also shot past $1.0. Currently, Solana is the biggest gainer over the last 24 hours trading 3.22 percent up at a price of $22.40.
Where’s Bitcoin heading from here?
On-chain data shows that after two days of strong volatility, Bitcoin’s trading volumes have emerged once again showing strength. In its latest report, the data from Santiment notes:
Bitcoin’s trading volume has re-emerged back above $30B per day as major price swings have ebbed and flowed $BTC‘s price between $27.4k and $30.2k. #Altcoins are drawing less and less interest as their prices have faded compared to #crypto‘s top cap asset.
Courtesy: Santiment
For the next leg of the run-up for Bitcoin, investors will be focusing on the Federal Open Market Committee (FOMC) interest rate decision ahead of next week. As per the CME FedWatch Tool, there’s an 87 percent probability of the third 25 basis points rate hike.
As per Edward Moya, senior market analyst for foreign exchange market maker Oanda, the Fed will likely continue further with one or two rate hikes before stopping. Moya wrote.
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Today’s economic data painted a picture of an economy that is slowing down, inflation is temporarily accelerating, and the labor market is softening.
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