• Bitcoin (BTC) was flat over the past 24 hours, on a day where US stocks sold off.
• Positive economic data rekindled fears that the Federal Reserve may need to keep tightening monetary policy longer than expected.
• Messari’s Ryan Selkis predicts that the market’s direction is “still all about macro and regulation” in his 2023 predictions.
Investors in the cryptocurrency market have had a tumultuous few days, as the US stock market sold off on the back of positive economic data. This caused fears that the Federal Reserve may need to keep tightening its monetary policy for longer than expected, and put downward pressure on risky assets.
Despite the turmoil, Bitcoin (BTC) managed to remain relatively unaffected, trading at around $16,800, with only a 0.01% drop over 24 hours. Ether (ETH), the second largest cryptocurrency, also showed some resilience, trading at around $1,223 and up 0.82%. The CoinDesk Market Index was up 0.5%.
The market’s direction is still uncertain, with many investors unsure how to proceed. Ryan Selkis, of Messari, released a 168-page report on his 2023 predictions, in which he commented that the market’s direction is “still all about macro and regulation.” He predicts that a recession could occur in 2023, but some investors think it’s more likely that the Fed will pivot once the recession reaches its peak.
The price of Bitcoin will surely be affected by any changes in the macroeconomic outlook, and its resilience over the past few days is a testament to its strength as an asset. Investors have been eagerly awaiting more clarity from central banks and governments, with many hoping that the current situation will soon be resolved.