Bitcoin Price and Ethereum Prediction: Can the Cryptocurrencies Escape Their Trading Range Today?
Bitcoin, the world's largest cryptocurrency, failed to maintain its previous day's gains and dropped below the $24,000 mark early on Friday, as overall coin prices declined. Several other well-known cryptocurrencies, including Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Solana (SOL), and Litecoin (LTC), were also in the red.
The downward trend could be due to increasing uncertainty over US monetary policy, which led to sharp losses in the cryptocurrency market.
On Friday, the global cryptocurrency market suffered a decline as investors anticipated further insights into US monetary policy from inflation data to be released later in the day. The Federal Reserve heavily relies on the United States' core PCE statistics to determine monetary policy, making today's data release critical to the market outlook.
With divergent opinions among Fed members on the optimal course of action, market volatility is expected to remain high in the coming weeks.
In addition, the overall strengthening of the US dollar was seen as another significant factor that contributed to the decline in the Bitcoin market. The US dollar was on track for its fourth consecutive week of gains, with investors anticipating that interest rates in the US would remain high for an extended period of time.
It is worth noting that the most recent data showed a surprising decrease in the number of people filing for new unemployment benefits last week, indicating a strong economy and tight labor market in the country.
As a result, solid US economic data and hawkish comments from Fed members this month have increased the likelihood of the Fed maintaining its monetary tightening trajectory for an extended period, which has led to a strengthening of the US dollar.
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