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| By Marija Matic |
Bitcoin (BTC, “B+”) has continued its bullish streak after closing the week near $28,000. It is currently trading around this price after reaching $28,500 today, a level we haven’t seen in nine months.
Even Goldman Sachs Group (GS) has confirmed that BTC is the best performing asset class so far in 2023:
Bulls have set their eyes on the psychologically important $30,000 mark as the Bitcoin dominance among the cryptos grows.
Meanwhile, altcoin-season chasers are tracking BTC dominance and BTC-paired charts to determine when Bitcoin will enter the consolidation range and allow altcoins to shine.
The main question now is whether BTC correct from here and consolidate in a lower range … or will it aim straight for the $30,000 without consolidating first.
Consolidation would mean a range with a lower bound above $25,235, but ideally above $26,000.
And while Bitcoin is benefiting from the still-brewing banking crisis, the U.S. government is struggling to find solutions as the contagion continues to spread.
In that regard, a coalition of central banks — including the U.S. Federal Reserve, European Central Bank, Bank of Canada, Bank of England, Bank of Japan and Swiss National Bank — has just announced coordinated action to enhance provision of U.S. dollar liquidity through U.S. dollar swap-line arrangements.
Notable News, Notes & Tweets
- One country, two crypto systems: Hong Kong harbors crypto hub ambitions despite China's crackdown.
- JPMorgan (JPM), Citi (C) and HSBC (HSBC) still welcome crypto clients.
What’s Next
Will the Fed pause rate hikes … or will it raise rates another 25 basis points despite banking turmoil?
We’ll find out on Wednesday, which can easily become one of the narratives to dictate this week’s closing price for Bitcoin.
It’s been a hectic ride when it comes to predictions for the upcoming meeting. Expectations were high that a 50-bps move will happen after Fed Chair Jerome Powell's testimony last week.
It was just a couple of days later when analysts switched to believing a pause was more likely due to regional banks' failures. Now, the situation is more unclear, with a high possibility of 25 bps.
What is certain is that there is high volatility ahead of us. Stay tuned.
Best,
Marija
