Forex Analysis & Reviews: 26.02.2023 - Farther and farther away...

26.02.2023 11:56 PM

Farther and farther away from $25,000. Bitcoin's nervous dance continues

Bitcoin edged up on Friday morning, but later it entered a correction.

According to data from the market tracking website, CoinMarketCap, over the past 24 hours, Bitcoin reached a low of $23,693 and a high of $24,572.

At the same time, on Thursday, it fell below $24,000 after trying to grow at the beginning of the trading session.

Recall that on Wednesday, Bitcoin closed the day below $24,000 for the first time in the last 8 days. A key pressure factor on the cryptocurrency market then was the weak results of the last trading session in the U.S. and Asian stock markets.

On Tuesday, the Dow Jones Industrial Average fell 2.06% to a one-month low, the S&P 500 fell 2.00% and the NASDAQ Composite lost 2.50%. Meanwhile, Asian stock markets also closed lower on Wednesday.

By the way, since the beginning of 2022, analysts increasingly began to emphasize the high level of correlation between the U.S. stock market and virtual assets amid tense expectations of both the consequences of the geopolitical conflict in eastern Europe and the further steps of the U.S. Federal Reserve.

Earlier, analysts of the investment company Arcane Research already stated that the correlation of BTC and tech stocks had reached a high since July 2020.

In addition, TradingView economists said that the correlation of the cryptocurrency market with the U.S. stock market in the fourth quarter of last year reached 70%.

Traditionally, coming to the end of February is considered a good month for Bitcoin. Since 2010, the cryptocurrency rose in price in this month in eight cases, and fell only by three. At the same time, the average increase in the coin was 31%.

Many experts believe that the recent breakthrough of the BTC's important mark of $25,000 this February will contribute to its further confident rise and make the next important target level of $29,500.

It was the first time since mid-June 2022 that BTC climbed above $25,000 last Thursday. The key reasons for the euphoria in the cryptocurrency market at the time were the permanently declining volatility of securities and bonds, oil prices, as well as the weakening U.S. dollar.

Take note that at the end of 2022, BTC fell by 64%. At the same time, during the first month of the new year, Bitcoin gained almost 40% in value, thanks to which last January was the best month for it since October 2021.

Cryptoanalysts are even more optimistic about March. For example, Michael Novogratz, CEO of digital asset management company Galaxy Digital Holdings, recently suggested that Bitcoin could reach $30,000 by the end of March.

Altcoin market

Ethereum, Bitcoin's main competitor, also started Friday with growth, which later turned into a correction.

As for the cryptocurrencies from the top 10 by capitalization, all of the coins here, except for a couple of stablecoins, reported a steady decline. Polygon (-4.87%) had the worst results.

At the end of last week, all cryptocurrencies from the top ten, with the exception of BTC (+0.61%) and a number of stablecoins, also showed a strong decline. Cryptocurrency Polygon (-5.71%) also led losses here.

According to CoinGecko, the world's largest aggregator of data on virtual assets, during the last 24 hours, among the top 100 most capitalized digital assets, token Bone ShibaSwap (+8.72%) led gains, while Ankr (-4.50%) led losses.

At the end of last week, among the first hundred strongest digital assets Stacks (+165.46%) showed the best results, while Loopring (-12.20%) showed the worst.

According to CoinGecko, as of Friday morning, the total market capitalization of cryptocurrencies managed to settle above the important key level of $1 trillion and stands at $1.048 trillion. Despite this, it has more than tripled since November 2021, when the figure exceeded $3 trillion.

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*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.