Bitcoin price is stable, but the risk of a pullback grows

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The price of bitcoin has been fluctuating in a sideways manner over the past few days, which indicates that the bulls and the bears are engaged in a fierce war. The S&P 500 Index has booked profits as a result of the diminishing expectations that the Federal Reserve will reduce interest rates earlier than expected. The possibility of a downturn in Bitcoin and some alternative cryptocurrencies is increased as a result of this, which may indicate a risk-off mentality in the near future.
On the other hand, the decline might not alter the optimistic outlook for the long run. Because of Bitcoin’s forthcoming halving in April, which has traditionally been a bullish event, investors are likely to consider every downturn as a buying opportunity. This is because the halving has historically been a bullish event.

Fundamental Updates

Let’s delve into the significant developments shaping the crypto market landscape:

Do Kwon to be extradited to US

Do Kwon, co-founder of Terraform Labs, will reportedly be extradited to the United States to face fraud charges. He has been in Montenegro since his arrest in March 2023.
On February 21, Montenegrin news site Pobjeda reported that the High Court of Podgorica dismissed a US request to extradite Kwon to South Korea. The ruling came after Kwon’s legal team filed an appeal, claiming that Montenegro’s Justice Minister had ultimate say over the Terraform co-founder’s extradition, which the top court rejected.
It’s uncertain when Kwon will visit the United States. After Terra collapsed in May 2022, his whereabouts were mostly unknown until March 2023, when Montenegrin officials arrested Kwon for using fraudulent travel documents. He was sentenced to four months in prison and has been the subject of extradition procedures while in imprisonment.

Circle will suspend minting USDC on the Tron network

Circle, the creator of the US dollar-pegged stablecoin USD Coin, has announced that it will terminate support for the token on the Tron blockchain, citing efforts to keep USDC credible, transparent, and safe.
Circle announced in a Feb. 20 blog post that it will no longer mint USDC on TRON effective now, and that it will gradually phase off support for the blockchain network.
Circle stated that it would continue to enable USD Coin transfers between Circle Mint commercial customers and other blockchains until February 2025.
The company encouraged retail users and non-Circle clients to transfer their Tron-based USDC to an exchange so that it could be transferred to a blockchain network that still supports USDC.

Key Data Points

Key Data Points For Crypto Markets

  • Total market capitalization: The total market capitalization of the crypto market is currently around $2.075 trillion. This is a net $26 Billion change from last week.
  • Bitcoin dominance: Bitcoin dominance, which tracks the percentage of the total market capitalization that is held by Bitcoin, is currently at around 48.90%. This is 2.39% down from last week.
  • ETH dominance: ETH dominance, which tracks the percentage of the total market capitalization that is held by Ethereum, is currently at around 17.3%. This is 5% up from last week.

Bitcoin Price Analysis:

Bitcoin is finding it challenging to maintain levels above $53,000, suggesting strong resistance from the sellers. If the value drops below $50,000, short-term traders might decide to sell and lock in their gains. This may lead the BTC/USDT pair to the $48,000-$47,000 range.

If the price bounces back strongly from the $50,000 level, it indicates that the overall sentiment is optimistic and traders are purchasing at discounted prices. This will likely lead to a rally above $53,000. The duo might then soar to $57,000. However, a correction in the BTC/USDT price is expected for this month or the next.

Bitcoin Price Analysis Graph

BTC Technical Indicator:

BTC Technical Indicator

Macro Updates:

  • Based on Nvidia’s earnings reports, the business reported a 265% growth in quarterly revenues to $22.1 billion, beating Wall Street projections.
  • The company attributed this spike to a global AI spending spree. This performance shows Nvidia’s key involvement in the S&P 500’s surge and the generative AI revolution.
  • China has prohibited significant institutional investors from net selling shares at the start and end of the trading day to stabilise the $8.6 trillion stock market with continuous falls.
  • Market sentiment was affected by the Fed’s latest minutes, which were cautious on early rate cuts. Energy equities gained 1.86% while technology shares fell 0.76%

Bitcoin returns were -1.4% for this week. The Alpha Blue Chip Focused Strategy returns were -6.67% during the same period (15 February -22 February). The Top Cap Digital Assets Strategy and Arbitrage Opportunities & Balanced Strategy returns were -2.41% and 1.28%, respectively.

Thanks for your support and trust.

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