As a consequential week of economic updates looms in China, the cryptocurrency market braces for a potential price surge of Bitcoin (BTC) and Ether (ETH). After rallying to $23,000 on Monday, BTC retreated slightly while ETH remained above the $1,600 mark. Markets are now waiting to see if the rally will continue. China’s hectic economic week could kickstart Bitcoin’s profit to go up.
Data releases from China might be the tipping point that drives Bitcoin out of its slump, where it has been trading in a tight range for the past few weeks. On Tuesday, economic figures for China’s balance of trade are expected to jump from $78 billion to $100 billion. Year-over-year export and import figures are also anticipated to improve.
In the US, the Federal Reserve have voiced concerns over the risks of crypto assets on banking organizations due to potential money laundering. But on-chain indicators show that the 70% of unique bitcoin addresses have a cost basis that is lower than the current price. This is a potential sign of BTC being oversold, at a potential bottom of the market.
The equity market has been looking a bit rosier with NVidia’s enthusiasm about their AI-focused chatbot lifting the Nasdaq. On the other hand, Ethereum-focused projects such as Web3 group chat protocol and NFT metaverse games are facing funding challenges. These are just a few of the events that are shaping the cryptocurrency market as the week progresses and the Chinese economic data comes in.
The supply of ETH has been dropping, signaling a potential investment for investors bullish on ETH. As the crypto market waits for the rally to continue, the crypto market sentiment is cautiously optimistic with Bitcoin showing resilience to Federal Reserve dialogue and high inflation. Technical analysis suggest BTC is capable of breaking the 25K mark, and with funding rates remaining positive for 10 days, it could be the sign investors have been looking for to capitalize on the potentially price surge of Bitcoin and Ether.
With all eyes on cryptocurrency, the next few days could be just what the market needs to kickstart Bitcoin’s profit boom. Will the data that comes out of China be enough to rally the slumping market? One thing is for sure, investors are paying close attention to the developments as the week progresses.
Rallying Out of Slump? China’s Hectic Economic Week Could Kickstart Bitcoin’s Profit Boom!
As the cryptocurrency market braces itself for an intense week of economic updates in China, investors are speculating if the data will be enough to drive Bitcoin (BTC) and Ether (ETH) out of their slump. With the US Federal Reserve’s dialogue about monetary policy, BTC has remained resilient. At the same time, on-chain indicators show that 70% of Bitcoin’s unique addresses have a cost basis that is lower than the current price, signifying a potential bottom of the market.
Analysts are expecting a jump in economic figures for China’s balance of trade from $78 billion to $100 billion on Tuesday. Year-over-year export and import data is also anticipated to improve. These data releases might just be the tipping point needed to fuel the rally.
The previously bearish market is shifting to cautiously optimistic with Bitcoin showing potential to break the 25K mark. Funding rates have also remained positive for 10 days, signifying bullish investor sentiment. Equity indexes have increased with NVidia’s enthusiasm about their AI-focused chatbot lifting the Nasdaq.
However, Ethereum-focused projects such as Web3 group chat protocol and NFT metaverse game have faced difficulties in funding. Despite this, the supply of Ether has been dropping, signaling a potential investment opportunity for investors bullish on ETH.
The highly consequential week of data releases from China might be what the market needs to kickstart Bitcoin’s profit boom. Investors will be intently scouring through the economic figures as the week progresses, hoping for that bullish sign to propel their investments into the green. Will Bitcoin and Ether be able to rally out of the slump? One thing is for sure, the next few days are sure to be decisive for the cryptocurrency market.
