Traders waited all week to take decisive action ahead of the weekend, and mild volatility prompted by US macro data releases did not lead to any change in overall trend.
Unfortunately, cryptocurrencies including Bitcoin and Ether saw their prices drop over the weekend. Bitcoin lost its grip on the $23,000 mark and Ethereum is barely holding the market at $1,600.
Why the Crypto Market is Down Today?
Crypto researcher and YouTuber Aaron Arnold said current job market data, which was released three days ago, was the cause of the drop. According to the report’s findings, the unemployment rate fell to 3.4% from the previous estimate of 3.6%. This is the lowest unemployment rate since May 1969. The number of people actively seeking work has fallen to 62.4%.
After a lackluster start to the earnings season, investors are likely to wait for Federal Reserve Chairman Jerome Powell’s speech, which is expected to take place on Tuesday afternoon, before making any significant changes to the market.
If signs of decline appear, the $21,000-$20,000 range could serve as a retest target for Bitcoin. Lots of rides are on the outcome of the Consumer Price Index (CPI) statistics for January, which will be released on February 14.
If it shows inflation falling less than expected or perhaps disrupting that downtrend, the data could be good for the US Dollar while mitigating some of the upside in risky assets like cryptocurrencies.
After a 13% drop since the middle of 2022, when it hovered at twenty-year highs, the US Dollar Index (DXY) is currently embarking on a stabilization process.
According to Aaron Arnold, the cryptocurrency market cannot officially start a bull cycle as long as interest rates remain at record highs. As of press time, Bitcoin is worth exactly $22,766 and Ether is worth $1,620.
