Traders waited through the week before making any decisive moves in anticipation of the weekend, and the slight volatility brought on by releases of U.S. macroeconomic data delivered no general trend shift.
Unfortunately, cryptocurrencies, including Bitcoin and Ether, have seen their prices fall down over the weekend. Bitcoin has lost its hold on the $23k mark and Ethereum is barely holding onto the $1,600 market.
Why Crypto Market is Down Today?
Crypto researcher and YouTuber Aaron Arnold said that the current employment market data, which was issued three days ago, was the cause for the drop. According to the findings of the report, the unemployment rate dropped to 3.4% from the previous estimate of 3.6%. That’s the lowest unemployment rate since May of 1969. The number of those actively looking for work increased to 62.4%.
After a lackluster beginning to the earnings season, it is likely that investors will wait until Federal Reserve Chairman Jerome Powell’s speech, which is slated to take place on Tuesday afternoon, before making any significant changes in the market.
If signs of a decline emerge, the $21,000–$20,000 range might serve as a retest target for Bitcoin. A lot of rides are on the result of the Consumer Price Index (CPI) statistics for January, which will be released on February 14th.
In the event that it shows that inflation is decreasing less than predicted or perhaps upsetting that downward trend, the data might be beneficial for the U.S. dollar while taking some of the wind out of the rise in risk assets like cryptocurrencies.
Following a decline of 13% from the middle of 2022, when it was hovering at twenty-year highs, the U.S. Dollar Index (DXY) is presently engaging in the process of stabilizing.
According to Aaron Arnold, the cryptocurrency market cannot formally start a bull cycle as long as interest rates remain at record highs. At press time, Bitcoin is worth exactly $22,766, and Ether is worth $1,620.
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