Markets
Crypto Market Watch: As India Counts Votes, Bitcoin Nears $70,000 Mark
As India counts votes for today’s general elections, the cryptocurrency market is full of optimism. Although the elections do not have a direct impact on cryptocurrencies, the new government could play a crucial role in shaping the regulations and adoption of cryptocurrencies in the country. Most analysts suggest a bullish trend for the cryptocurrency market, with Bitcoin and Ethereum leading the way.
Bitcoin rally
Bitcoin is on the verge of a major rally, hitting the $70,000 mark after encouraging inflation data from the United States. Shivam Thakral, CEO of BuyUcoin, explains: “The weak inflation data has sparked debates about a potential interest rate cut by the US Fed at its next meeting this month. If Bitcoin were to surpass its all-time high again, we could see BTC approaching $100,000, as predicted by banking giant Standard Chartered.”
Thakral adds that current macroeconomic factors appear favorable and the momentum is expected to continue. This sentiment is echoed by the CoinDCX research team, which notes that Bitcoin is consolidating between $69,000 and $70,000, with bullish signals coming from the exponential moving averages (EMAs) and positive inflows into Bitcoin ETFs.
Ethereum and Altcoins
Rajagopal Menon, VP of WazirX, highlights bullish trends in the cryptocurrency market, especially for Ethereum. “Ethereum continues to fluctuate around its 50-day EMA, which has been a strong support level. Technical indicators are showing positive signs, with the stochastic indicator starting to overlap positively, indicating a potential bullish trend.”
Menon also points out that Bitcoin is testing a crucial resistance level at $69,110.00. “A breakout of this level could push Bitcoin higher, with initial targets set at $70,645.00 and potentially extended to $73,800.00. The bullish outlook for Bitcoin remains intact as long as it remains above $67,080.00,” he says.
Market structure
Institutional interest in Bitcoin is growing. The CoinSwitch Markets Desk reports that Bitcoin has stabilized around the $69,000 mark, with the market structure poised for another step towards its all-time highs. Ethereum also found its base at $3,800, with minimal selling pressure expected as trading of the ETH ETF begins later this month.
According to the CoinSwitch Markets Desk, the US state of Wisconsin’s investment in Bitcoin is evidence of growing institutional interest. Wisconsin has invested a small portion of its pension fund in Bitcoin and is expected to increase exposure through Bitcoin spot ETF products. Currently, this amounts to 0.1% of its $156 billion in assets.
The Federal Reserve’s next policy meeting will be a focal point for the cryptocurrency market. Analysts believe that potential rate cuts by the Fed in the coming months could provide further impetus to the market. “The expectation of stable interest rates contributes to the current optimism in the cryptocurrency market,” says Menon. Investors hope that these macroeconomic factors will continue to push the market higher.