The world’s largest crypto by market capitalization picked up the pace on January 26. After a couple of days of a small retraction due to unfavorable news regarding government regulations and the imminent bankruptcy of Genesis.
On this date, bitcoin reached back past the $23,000 resistance for the third time in a week. However, the currency was unable to keep above that price zone and recently retracted back to beneath it.
Bitcoin Decreased Last 24 Hours
The asset is currently on a 1.75% decrease in the previous 24 hours, currently trading at $22,794 at this time of writing.
Since picking up an incredible amount of traction in January, the $23,000 resistance zone is proving to be a tough milestone for the crypto market to break. $BTC reached that price zone for the first time in six months on January 21, and since then has retracted and retested that zone several times.
The difficulty bitcoin is demonstrating in surpassing that zone could indicate that January’s rally has finally peaked. As of right now, the cryptocurrency market will likely consolidate and await the next major news in order to rehearse a more significant price change.
US Fed Reserve’s FOMC Meeting Coming Next Week
Luckily, the next major news is not far off. On January 31, the United States Federal Reserve will take part in the year’s first FOMC meeting, where it will announce the next step in its interest rate policy.
The upcoming reports, including December’s CPI index, could indicate that the FED will finally begin to reduce its interest rates in 2023. If that happens, digital assets could pick up a lot more confidence, due to lower interest rates making borrowing money easier, therefore bringing more investors into the market.
In case the indications that the FED will continue to “slow down” the interest rate raises, the crypto market, including bitcoin, will likely see a favorable market as a result.,