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Bitcoin Price and Market Conditions: What’s Next?

Bitcoin Price and Market Conditions: What’s Next?

On Friday, the prices of cryptocurrencies experienced a decline as investors were concerned about the strength of the global banking system and US monetary policy.

Тraders anticipate challenges over the weekend due to the expected lack of liquidity in markets, which will likely amplify price swings.

Financial instability

Just a couple of weeks back, the world’s largest cryptocurrency plunged under $20,000 when Silicon Valley Bank crashed, which sent the U.S. banking system into a frenzy.

The cost of insuring Deutsche Bank’s debt soared to a four-year high, causing concern for investors. The bank’s shares plunged 14% to around $8.60, before going back up to $9.35 at the time of writing.

DB is not the only concerning issue since many banks are showing that they can’t hold out for much longer. As was the case with the Credit Suisse bailout.

Moreover, investors continued to weigh recent regulatory enforcement issues, such as the Securities and Exchange Commission’s (SEC) issuing a Wells Notice to Coinbase.

READ MORE: Binance Halts Spot Trading due to Technical Issue

The Federal Reserve recently increased its benchmark interest rate by 0.25%, but Fed Chair Jerome Powell hinted that it might be nearing its maximum level for 2023. Despite this, he also mentioned that it’s still too early to determine the impact of tighter credit conditions, leaving room for flexibility in monetary policy.

Bitcoin price

Although Bitcoin has grown by 70% so far this year, leading to claims of a new bull market, the price of BTC has declined by 3% in the past 24 hours and is currently trading at $27,100. Experts have identified the $30,000 level, where prices were before the June selloff, as a critical point to watch.

Bitcoin’s resistance had formed around $28,800, which could be a logical place to see it make another leg down. However, a continued consolidation at this level would be welcomed.

Margin and futures markets have revealed that market makers and whales were caught off guard. Despite this, if the current support level holds, professional traders may be prompted to add long positions, ultimately enhancing bullish momentum.

Yesterday Binance’s BTC liquidity crashed by 70% after eliminating its flagship no-fee trading feature for all BTC pairs except for BTC/TUSD.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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