Bitcoin’s Soaring Momentum Is Waning, Making Investors Vigilant
After a fascinating January, the price of Bitcoin has stalled, leaving experts worried about the flagship cryptocurrency’s future trajectory. The Bitcoin price increased by 52.97% before retracing 10% in the middle of February 2023. Since then, the price has fluctuated sideways as customers remain concerned about what the following months may bring.
Kraken’s unregistered securities charge
The Bitcoin price correction in mid-February coincided with increased regulatory activity by the US Securities and Exchange Commission (SEC). The SEC charged Kraken, a leading bitcoin exchange, with selling unregistered securities. This charge prompted Kraken to pay a $30 million fine and discontinue its staking-as-a-service business for customers.
Around the same time frame, modifying macroeconomic policies in the United States led to the Bitcoin rise slowing, finally resulting in a discernible decline. As February comes to a close, the price of bitcoin has fallen from a year high of $25,270 to a local low of $22.770. Among the macroeconomic changes are higher-for-longer interest rate policies. Such restrictions tend to reduce investor interest in speculative assets such as Bitcoin.
According to Bloomberg research that compares current Bitcoin behavior to historical data, the price of Bitcoin may fall further in March. According to the expert, the majority of the Bitcoin rise over the last two months occurred in January. Bitcoin’s gain has dwindled to about 2% since the beginning of February.
The Bitcoin Price Pattern
According to history, on four of the past five occasions, Bitcoin’s price performed similarly, and the price fell further the following month. The only time the pattern did not occur was in February 2021, during a major bull run.
The creator of the “Crypto Is Macro Today” newsletter, Noelle Acheson, confirmed the effect of macroeconomic issues on Bitcoin pricing. He emphasized that the dollar’s strength, along with speculations on increasing borrowing rates, is contributing to the current market slump.
At the time of writing, Bitcoin is worth $23,409. Having fallen by 0.82% on the day.
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