• Crypto Market experienced a stellar January, but saw a modest stumble as February began.
• Bitcoin’s price dropped below the $23,000 threshold, while Ether’s value dropped by 2.4%.
• Michael van de Poppe warns of a shift in the market for risk assets and predicts a potential drop in Bitcoin’s price to around $20,000 in February.
Crypto Market Outlook For Feb-2023
The cryptocurrency market as a whole experienced a stellar January, but saw a modest stumble as February began. Bitcoin’s price has dropped below the highly acknowledged $23,000 threshold, while Ether’s value has dropped by 2.4% in the last twenty-four hours as of the time this article was written.
Shift In Risk Assets
As February approaches, there have been forecasts issued by prominent crypto expert Michael van de Poppe who cautions that there is an impending shift in the market for risk assets. Van de Poppe asserts that there is mounting likelihood that the bullish trend observed in cryptocurrencies and stocks this year may revert to negative trend due to uncertainties surrounding new macroeconomic data from the United States on market sentiment. He now predicts a potential drop in Bitcoin’s price to around $20,000 in February despite previously confirming his bullish view on Bitcoin reaching $40,000.
Impact Of U.S Macroeconomic Data On Market Sentiment
The release of the January Consumer Price Index (CPI) statistics set for February 14th will be closely monitored for signs of decline or interruption in downward trend of the crypto market due to its impact on U.S currency and hence bolstering crypto markets . If inflation decreases at lower rate than predicted it may be positive for U.S currency with good implication on crypto markets else if increase it may result into further dip or stagnation of prices .
Potential Retest Of Prices Between $20k-$21k
Van de Poppe believes that if signs of decline materialize then potential retest of prices between $20k and $21k may occur , however he still stands with his previous prediction of bitcoin hitting marks around 40K by end this year .
Cryptocurrency markets are subject to extreme volatility due to macroeconomic changes and even slightest change can affect these markets heavily . Hence prudent decision making should always be done after proper research and understanding before investing into any kind asset class .