Bitcoin continues to slide below $24,000

Bitcoin still holds above $20,000, will 2023 be the year of recovery?

Bitcoin price closed 2022 at $16,529 and the repeated failure to test the $25,000 level may cause concern for some investors.

The bears are defending the $25,000 level pretty well, while the bulls have had several failures at this level between Feb. 16 and Feb. 21. Currently, it looks like a resistance at $24,000. is continuing to get stronger after each retest.

bitcoin price chart

Determining the reason behind Bitcoin’s 45.5% year-to-date gain is unclear, but part of it comes from the US Federal Reserve (Fed) failed to contain inflation while raising interest rates to 15-year highs. The unintended consequence is higher government debt payments and this puts additional pressure on the budget deficit.

It is virtually impossible to predict when the Fed will change its stance, but when the debt-to-gross domestic product ratio exceeds 128, it won’t take much longer than 18 months. At some point, the value of the US dollar may be threatened by excessive debt leverage.

On February 23, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency issued a declare generally encourage US banks to rely on capital from the crypto sector to prevent liquidity from drying out by maintaining robust risk management practices.

Considering the regulators have been putting a lot of pressure on the crypto sector, Bitcoin derivatives are doing well. For example, on February 22, the general manager of the Bank for International Settlements Agustín Carstens emphasize the need for regulation and risk management in the crypto space. The limited impact of the BIS statement on the price is a bullish sign and it could increase the likelihood of Bitcoin price breaking above $25,000 in the short term.

See also: Mike Novogratz criticizes International Bank for ignoring “facts” about BTC and ETH

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