As we venture into 2023, the cryptocurrency market presents a promising outlook, with Bitcoin potentially reaching the $50,000 milestone, Ethereum aiming for $10,000, and the rising popularity of Love Hate Inu targeting the $1 mark. This optimistic forecast is fueled by numerous factors, such as growing institutional adoption, technological advancements, and increased public interest in digital assets, which continue to shape the future of the cryptocurrency landscape.
Crypto Market Fundamentals
The global cryptocurrency market has been quite volatile, but things are looking positive since this year started. Bitcoin, which is one of the most well-known cryptocurrencies, has gained significant momentum in recent weeks and has crossed the $30,000 mark lately. Similarly, Ethereum, the world’s second-largest cryptocurrency, has also reached a significant milestone of $2,000.
Bitcoin Price
Although, there has been a recent drop in the prices of Bitcoin and Ethereum, indicating that the sharp upticks in the cryptocurrency market may be losing some ground. However, the current Bitcoin price is $30,449, and the 24-hour trading volume is $18.5 billion. Bitcoin has fallen by over 1,50% in the previous 24 hours.
In the meantime, the current price of Ethereum is $2,093 with a 24-hour trading volume of $12.2 billion. Ethereum has dropped 0.50%. in recent few hours.
Impact of US Retail Sales Drop on Bitcoin Price
The global cryptocurrency market failed to extend its previous rally and dropped slightly on the day. At the time of writing, the crypto market cap was $1.27 trillion, representing a 1.14 percent 24-hour loss. However, the US retail sales dropped in March, which suggests that the US economy is slowing down, but it will not help in preventing the Federal Reserve from raising interest rates in May.
This news led traders to bet that the central bank would raise its lending rate next month by another quarter of a percentage point. As a result, Bitcoin’s price dropped by 1.71% in the last 24 hours as investors found traditional investments such as stocks more attractive than Bitcoin.
Thus, the Fed is expected to raise rates one more time in May before pausing, but it’s unclear how long rates will remain at their highest since the 2007 global financial crisis. Although, the uncertainty in the market remains on the card due to inflation, which may be higher than expected, leading investors to be cautious.
Swiss Government’s Controversial Merger of UBS and Credit Suisse Boosts Bitcoin Price
Across the ocean, the Swiss government recently used an emergency law to push through a merger of UBS and Credit Suisse, despite parliament’s rejection of aid for the deal. However, this move damaged Switzerland’s reputation as a business-friendly and safe financial hub. Thereby, the Swiss franc’s value decreased, making Bitcoin more attractive to investors.
This news helps BTC to limit its modest losses and regain its traction. Investors are seeking alternative investments due to the uncertainty in the Swiss financial industry.
Tesla’s Bitcoin Holdings and Sales
Furthermore, Tesla sold 75% of its Bitcoin holdings in Q2 2022, making a profit of $64 million. Since then, the price of Bitcoin has risen by over 50%, meaning Tesla could have made an additional $500 million if they had waited until now to sell.
Tesla bought $1.5 billion of Bitcoin in February 2021 and made $165 million in profit from two sales. However, Tesla’s remaining BTC holdings are currently at a loss of $56.6 million.
Tesla’s previous Bitcoin sales came during weak free cash flows, indicating that Musk used Bitcoin as a haven during cash crunch phases. However, the impact of this news on the BTC price is uncertain.
Alternative to Bitcoin – Love Hate Inu
Love Hate Inu is a new cryptocurrency that combines the popularity of meme coins like Dogecoin with the utility of Ethereum. It uses a vote-to-earn system where users can stake their coins to vote and earn more tokens by doing so. The presale began on March 8 and raised over $200,000 within two days.
Love Hate Inu’s presale has been a huge success, already raising over $4.1 million since its launch on March 7. The community’s support is strong, and analysts expect the momentum to continue until the end of the presale.
The current presale price is $0.000115 and the presale will end in a few weeks at $0.000145.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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