- Bitcoin is now establishing a range of $29,000 – 31,000.
- Ethereum is expected to range between 2050 and 2120.
- The Shapella Upgrade went live, allowing ETH-staked withdrawals.
- The group of newly listed currencies, including $ARB, $ID, etc., have increased the most during the last few days.
- Initial forecasts for the March CPI figures indicated a drop in inflation rates to 5.2%.
- The CPI for February was 6%, a decrease from January’s reading of 7%. However, an additional 1% decline had an instantaneous impact on the price of Bitcoin.
- During the release of the data, Bitcoin traded steadily at $30,000 before soaring to $30,500.
- The Fed’s efforts are having an impact, as seen by the dropping inflation YoY, and the central bank may soon start changing its course.
According to the Bureau of Labour Statistics (BLS), the U.S. Consumer Price Index (CPI) rose by 0.1% in March, which is less than the 0.4% increase seen in February and less than the 0.2% increase that economists had predicted. The CPI was up 5.0% from a year ago, which is less than the 6.0% increase in February and less than the 5.2% increase that was expected. The price of bitcoin (BTC), which topped $30,000 last week for the first time since June 2022, went up almost 1% to $30,500 right after the story came out. Recent gains in Bitcoin have been affected at least in part by the idea that the U.S. Federal Reserve would stop raising interest rates, possibly as soon as its meeting on May 2-3. If the inflation numbers that came out Wednesday were lower than expected, it could add to these hopes.
Along with Bitcoin, U.S. stock market futures have gone up since the story. The Nasdaq is up more than 1% and the S&P 500 is up about 1%. Gold’s price is also going up, by more than 1% to $2,042 per ounce. Bond prices and the dollar are both going down. The 10-year U.S. Treasury yield is down 5 basis points to over 3%, and the U.S. dollar index is down over 0.5%.
Following the implementation of the long-awaited Shapella upgrade, Ethereum took the attention of Bitcoin last week. Its native coin has far outperformed BTC, boosting its supremacy. In the midst of the significant movements in staked ETH, the asset rose again hours ago to over $2,130 to record its latest 11-month high before retreating to just under $2,100 as of today. According to Coingecko, the entire crypto market cap has stayed practically unchanged at roughly $1.265 trillion
None of the upcoming planned updates are expected to be as significant for investors as Ethereum’s switch to proof-of-stake, which turned the cryptocurrency deflationary rather than inflationary, eliminated transaction fees, lessened Ethereum’s environmental effect, and allowed investors to earn a return on staking. However, since Ethereum is always aiming to become faster, less expensive, safer, and simpler to use, additional improvements in the future, like abstraction, will still have a significant impact on end users.
Crypto fear and greed index reaches a 17-month high:
As Bitcoin (BTC) traded above the psychological barrier of $30,000 for many days before gradually reversing course below it, the cryptocurrency market’s Fear & Greed index has shot to a 17-month high as the market consolidates recent gains
Interestingly, the Fear & Greed index for the cryptocurrency market is presently at 69, considerably over the “greed” threshold and the highest level since November 2021, when the sector was experiencing one of the biggest bull runs since its formation, as per the alternative data.
The above chart which tracks crypto market sentiment shows figures from February 1, 2018, and on November 9, 2021, it showed that the crypto Fear & Greed index was at 84 in favour of “greed,” as shown. A number of 100 indicates “extreme greed,” whereas a value of 0 denotes “extreme fear,” on these charts and gauges.
Bitcoin Price Analysis:
Bitcoin dropped from $31,000 last week, a sign that the bulls were taking profits. The bears will attempt to exploit the circumstance and push the price down to the $28,500 price level. If the price moves back up from this level, it will indicate that traders are still in a bullish mood and see price dips as a buying opportunity. The bulls will then seek once again to push the price upward towards the formidable overhead barrier at $32,500. In the short run, if the price falls below the $28,500 price barrier, this optimistic outlook will be rendered meaningless. The bears may feel emboldened by this and attempt to drive the BTC/USDT pair down to $27,812 and then to $24,719 in the future.
Concluding Thoughts:
Bitcoin has made a compelling case in recent months that a cycle bottom is imminent. However, history suggests that we might see a fairly violent pullback before the Halving. With staking withdrawals now available, Ethereum is a more appealing investment since it provides a more liquid income. As a consequence of the Shapella Upgrade, Ethereum’s price seems to have risen, and Ethereum has many more upgrades in the works that might catalyze additional use and a higher price. Thus, despite its recent surge, Ethereum remains an attractive investment that is still considerably below its all-time highs. Pullbacks are a normal element of an upswing. They not only assist to shake out the weaker hands, but also provide a chance for traders to add to their position or make new entries. The Crypto Fear & Greed Index has increased to 69, suggesting that traders have begun to get greedy again. When this occurs, it is important to be cautious in the short term, since when new traders start chasing prices higher, experienced traders sell into strength and purchase on falls. Because the market is hot, a decline is possible.
