Bitcoin Price Rises Despite Analyst Prediction of Drop to $21.5K Amid Bond Market Selloff
Cryptocurrency markets had a positive start to the week on Sunday evening, with major coins trading in the green. Bitcoin (BTC/USD) was trading above $23,000, Ethereum (ETH/USD) was trading at less than $1,700, and Dogecoin (DOGE/USD) was trading at $0.081, up 1.26%. The global cryptocurrency market capitalization stood at $1.07 trillion, up 1.68% in the last 24 hours. The U.S. equities market ended the week on a sour note, with the S&P 500 and Nasdaq Composite closing down 1.05% and 1.69%, respectively, on Friday, due to a higher-than-expected inflation report.
The International Monetary Fund (IMF) has issued recommendations for member countries to regulate cryptocurrencies, warning that their increasing popularity poses a threat to the effectiveness of global monetary policy. Former FTX Chief Sam Bankman-Fried has asked a court for additional time to find a technology expert to educate the court on VPN usage and to file a proposal for new bail conditions.
Analysts have suggested that the current risk aversion on Wall Street could support downward pressure on Bitcoin to the lower boundaries of its $21,500 to $25,000 trading range. They have also noted that the total crypto market capitalization still offers a clear picture of potential near-term activity, with Bitcoin and Ethereum both having more traders sell at a loss than at a profit this week. Analyst Justin Bennett believes that BTC’s current $23,000 price point is a “pivotal” moment in the market, and that if it loses out $22,600, it is highly likely that Bitcoin will trend toward $20,000.