Category: NEWS
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NFP payrolls news and its impact on Bitcoin price
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Bitcoin price has been in a consolidation phase in the past few weeks.
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The US will publish the latest non-farm payrolls (NFP) data.
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Strong jobs numbers will be bearish for BTC.
Bitcoin price has been in a tight range in the past few months. BTC/USD has remained between last month’s low of about 16,285 and a high of 18,455. Bitcoin has dropped by more than 22% from the highest level in November.
US non-farm payrolls data
Bitcoin price has been in a consolidation phase in the past few weeks. The next key catalyst for the BTC price will be the upcoming American jobs data. Economists surveyed by Reuters believe that the economy added more than 200k jobs while the unemployment rate remained at 3.7%. If analysts are accurate, it means that the economy added millions of jobs in 2022.
They also expect the data to show that the country’s wages held steady in December. The average hourly earnings are expected to have risen by 5.0% while the participation rate remained at 62.1%. These numbers will come a day after ADP published strong jobs numbers. They showed that the economy added 235k jobs.
US jobs numbers have an impact on Bitcoin prices because they tend to influence the Federal Reserve. The Fed has a dual mandate to ensure that inflation and unemployment rate are steady. It tends to hike rates when inflation is rising. In 2022, the bank hiked rates by 450 basis points.
The NFP payrolls data will come two days after the Federal Reserve published minutes of the past meeting. These minutes revealed that the Fed was considering hiking interest rates in 2023 in a bid to bring inflation lower.
All signs are that inflation is easing. In December, inflation data showed that consumer prices dropped to 7.3% in November. With gasoline prices and natural gas prices falling, there is a likelihood that inflation eased.
Bitcoin price will likely drop if the US publishes strong jobs data because it will mean that the Fed will continue hiking rates.
Bitcoin price prediction
The four-hour chart showed that Bitcoin has been in a consolidation phase in the past few weeks. As a result, it has remained at 25-day and 50-day moving averages. It is also moved slightly above the Woodie pivot point while the Average True Range (ATR) has pointed downwards.
Therefore, Bitcoin will likely remain in this range in the coming days as investors wait for the upcoming US inflation data. The key level to watch will be at $15,800.
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Binance
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
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73% less Bitcoin millionaires than a year ago, as crypto losses top $2 trillion in torrid 2022
Key Takeaways
- Cryptocurrency industry was valued close to $3 trillion entering 2022, now it is $800 billion
- There are 73% less Bitcoin millionaires after 2022
- Bitcoin has pulled back 75% from its all-time high fo close to $69,000
- 25% of the bitcoin supply was in a loss entering the year, now it is over 50%
- Number of investors holding greater than 1 BTC jumped 20% as the hurdle became much more attainable
Once upon a time, the cryptocurrency market was valued at $3 trillion. To be precise, this was in November 2021, when Bitcoin traded at its all-time high of close to $69,000.
But then along came 2022. Inflation sparked as a result of the COVID money printing, war in Ukraine and supply chain issues, meaning central banks worldwide were forced to hike rates to curtail a spiralling cost-of-living crisis.
With the cheap liquidity pulled out from under markets, Bitcoin – and crypto as a whole – felt the pinch. We have seen top 10 cryptocurrencies collapse, one of the top exchanges revealed to be a house of cards and numerous other bankruptcies and scandals.
The loss has been greater than $2 trillion, with Bitcoin shedding three-quarters of its value as at the time of writing, trading at $16,800.
Bitcoin millionaires
Looking at on-chain data from bitinfocharts.com, Bitcoin millionaires have dropped like flies. Entering 2022, there were 90,000 addresses containing over a million dollars worth of Bitcoin. Today, it is 24,000 – that amounts to a fall of 73%.
“The on-chain data sums up what is glaringly obvious from looking at a Bitcoin price chart – that the party is over and investors are no longer dreaming of retirement off their Bitcoin holdings, in the near future at least! Nearly three-quarters of Bitcoin millionaires losing that status is perhaps the best piece of data of all to summarise how ugly 2022 was for investors” said Max Coupland, Director at CoinJournal.
Percent in supply in loss doubles in 2022
Bitcoin’s returns before 2022 were astonishing. As a result, the bulk of the supply was in profit, with only 25% of the supply loss-making entering the year. By year-end, this had doubled to over 50% – another stunning statistic when considering that Bitcoin was the best-performing asset class in the world over the prior decade.
Addresses holding greater than 1 BTC
On the flipside, with Bitcoin being so cheap compared to last year, the number of addresses containing one Bitcoin or greater – “whole coiners”, as they are known – is at all-time high, even if the dollar value contained in those addresses is way down.
Entering 2022, there were over 814,000 addresses holding more than 1 BTC. By the end of the year, this number was over 978,000 – that is a rise of 20%.
As can be seen when zooming in on 2022 on the below chart, there were significant jumps when Bitcoin plunged off the back of the three major scandals of 2022 – Luna’s death spiral, Celsius’ insolvency and the revelations of fraud at FTX.
Dropping sentiment matching falling prices
Perhaps the biggest problem emerging from 2022 is related to these scandals. The reputation of crypto has taken a hammer blow, most notably with the shocking downfall of FTX and disgraced former CEO Sam Bankman-Fried.
According to a CNBC survey as of November 2022, only 8% of Americans now have a positive view of cryptocurrency.
Crypto investors have seen similar percentage declines before, of course, only for the market to bounce back. But this time, crypto is fighting against a pullback in the wider economy for the first time in its history.
Until now, it had been zero (or negative) interest rates and a warm money printer. Now, we have transitioned to a new environment, and crypto investors are feeling the pain. They will hope that 2023 can bring a return to prominence and start mending the reputation of the wounded asset class.
If you use our data, then we would appreciate a link back to https://coinjournal.net. Crediting our work with a link helps us to keep providing you with data analysis research.
Research Methodology
Address data taken from on-chain. Price data from Yahoo Finance.
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Bitcoin remains close to $17k after FOMC minutes release: Will BTC rally soon?
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Bitcoin price steadied above $16,800 as US Federal Reserve officials agreed to slow its pace of interest rate hikes.
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The latest FOMC minutes indicate that US policymakers are focused on controlling the pace of price hikes.
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Bitcoin could surge past the $17k resistance level soon.
BTC eyes the $17k resistance level
The United States Federal Reserve recently released minutes from the Federal Open Market Committee for December. Fed members agreed that a restrictive policy stance would need to be maintained for now until the incoming data provided confidence that core inflation was on a sustained downward path back down to 2%.
This latest cryptocurrency news saw Bitcoin, the world’s leading cryptocurrency by market cap, maintain its price above the $16,800 level over the last 24 hours. It has lost less than 1% of its value, and the price of Bitcoin now stands at $16,834.
The broader crypto market is also recovering from its recent slump. At press time, the total cryptocurrency market cap stands at $819 billion, up by less than 1% in the last 24 hours.
Key levels to watch
The BTC/USD 4-hour chart is bullish as Bitcoin has held its ground above the 50-day Exponential Moving Average (EMA) at $16,714 over the last few days.
The MACD line is above the neutral zone, indicating that the leading cryptocurrency has preserved its downward trend from the standpoint of realised price. The 14-day RSI of 61 also shows that more bulls controlling the market could see BTC enter the overbought region.
If the bullish momentum increases, BTC could surge past the first major resistance level at $17,145 over the next few hours. However, Bitcoin could struggle to surpass the second major resistance level at $17,485 in the short term, unless it gains support from the broader crypto market.
Where to buy Bitcoin now
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
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Ethereum ETH recovering above $1,250. Is this a bullish trigger?
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Ethereum hovered around the $1,250 resistance on Wednesday
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Ethereum network surpassed Bitcoin in transaction volumes in 2022
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Wait for a bullish confirmation before buying ETH
Ethereum (ETH/USD) is trading at its crucial resistance zone of $1,250 after recovering 3% on Wednesday. This level has proved difficult to crack since plunging below it in mid-Dec. The new year recoveries may keep bulls on alert, although it is still too early to judge how far the price can surge.
Although 2022 was a difficult year for Ethereum, fans will be delighted by cryptocurrency news on network activity. Data from Ycharts and Nasdaq show that Ethereum topped Bitcoin in transaction volumes last year. The network witnessed 408.5 million transactions, surpassing Bitcoin’s 93.1 million. The higher volatility in Ethereum was connected to events such as NFT launches. Bitcoin, however, retained the crown as the most searched cryptocurrency.
Data by Bitinfocharts shows that into 2023, transaction volumes are still rising for Ethereum. As of January 2, the count hit 924,614, higher than 229,191 for Bitcoin.
Ethereum on a short-term appreciation to the $1,250 resistance
ETH/USD Chart by TradingView
A technical outlook shows ETH trading on a short-term trendline initiated from the $1,100 bottom. The cryptocurrency trades with improved buy side volumes, although still not very significant. The MACD indicator is bearish, but momentum has improved slightly.
What to watch next for ETH
Ethereum is a candidate for a bullish breakout at the $1,250 resistance. The bullish candlestick will be watched by the buyers.
Conversely, bears could take control of the price at the resistance zone. That could see ETH slide to the short-term ascending trendline.
If you are considering buying ETH, it is important to watch for the price to clear $1,250 successfully. As long as the price remains below this level, ETH is vulnerable.
Where to buy ETH
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
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