A firm BTC could alter the recent crypto downtrend amidst a global economy where tensions are rising with inflationary and geopolitical issues.
The last few days saw the crypto market with losses as even Bitcoin went down towards $27000. The event was not unexpected, with rising pressures across the global economy. But on the contrary, Bitcoin’s $27000 support is still strong. The level could be an opportunity for bulls to buy and stop the crypto downtrend further.
A few analysts recently expressed their opinions on the trend of increasing interest rates worldwide. Higher rates had prevented a stronger inflow of capital into crypto and other equity markets, leading to lower volumes. As an asset class, crypto has retained long-term investors, churning out more than 60% returns in 2023. Further returns will likely depend on crypto ETFs, the overall regulatory landscape, and liquidity in the economy.
Experts have predicted a slow movement for Bitcoin in 2023 but have revised estimates for the next few years. Most expect BTC to hit its all-time highs within the next few years and consolidate its position. The market may see even better returns with retail and institutional investors increasing their focus on crypto.
Bitcoin’s market cap is static at $551 billion, while that of ETH is at $207 billion. The crypto market’s overall capitalization is comfortably trading at over $1 trillion.
BTC/USD 1D price chart
Bitcoin is currently trading at around $27000 on October 11, 2023, with BTC/USD trading lower by 2.2% in the last 24 hours. BTC/USD is trading around the same levels as its 20-day EMA (27,015), as BTC’s 24-hour volume was at around $11 billion. Bitcoin has seen around 63.33% returns on a year-to-date basis. 7-day returns for BTC stands at -1.3% while its 100-day EMA was at around $27,952.63. Bitcoin could cross this level if bulls start buying in the next few days.