• Cryptocurrency prices held steady on Thursday despite a decline in traditional markets due to recent economic data and comments from the Federal Reserve.
• Bitcoin rose from a low of about $20,408 late Wednesday night to an intraday high of $21,207 on Thursday afternoon.
• Jim Wyckoff and Milky Bull Crypto predict that Bitcoin will soon surge to $28,000.
The cryptocurrency markets were relatively calm on Thursday, with Bitcoin holding steady at the $21,000 level despite a decline in traditional markets due to recent economic data and comments from the Federal Reserve.
The S&P, Dow, and Nasdaq all saw significant losses throughout the day but managed to recover some of their losses towards the end. Despite this, price action from Coinmarketcap.com shows that Bitcoin continued to climb throughout the day, rising from a low of about $20,408 late Wednesday night to an intraday high of $21,207 on Thursday afternoon, despite concerns over the potential bankruptcy of Genesis Global Capital.
The sideways price action for Bitcoin over the past few days is being seen as a normal pause after reaching a four-month high on Tuesday. According to Jim Wyckoff, a senior technical analyst at Kitco, Bitcoin bulls currently have the upper hand in the short term, with a strong uptrend on the daily chart, indicating the potential for further gains in the short term. This sentiment is echoed by blockchain analyst Milky Bull Crypto, who predicts that Bitcoin will soon surge to $28,000.
Meanwhile, Federal Reserve Vice Chair Lael Brainard stated during a speech at the University of Chicago School of Business that the central bank must continue to tighten monetary policy in order to achieve a sustainable 2% inflation rate. This comes as the U.S. economy enters the second year of a pandemic-related economic downturn, with the unemployment rate still elevated at 6.7%.
It remains to be seen whether Bitcoin can continue its ascent to new heights, or if it will fall to lower levels. However, it is clear that the cryptocurrency markets continue to be resilient despite the uncertain economic environment, providing investors with a safe haven asset to potentially hedge against losses in traditional markets. Only time will tell if Bitcoin can reach the $28,000 target predicted by analysts, but in the meantime investors will likely remain cautious in the face of ongoing market volatility.