Losses in Bitcoin and Co. in the last 24 hours many investors frown. This raises the question of whether the bull run from the beginning of the month may already be over.
Red numbers for Bitcoin and Co.
In a monthly comparison, a positive picture of the development from last year’s crisis has emerged for the first time since the market collapse in 2022. This allowed the total market capitalization to reach $1.04 trillion again.
Despite this, the market share fell by around 0.40% in a 24-hour comparison. This development is observed in almost all cryptos. The main cryptocurrency in the Coinmarketcap ranking, Bitcoin, while still dominating the market, has slipped back below the key $23,000 level on a 24-hour basis and currently stands at $22,920. That means a small loss of 0.80% in the last 24 hours. Bitcoin also posted losses of 0.30% within the last week.
Most altcoins are not spared from market developments either. Ethereum is trading at just above $1,570 with a 24-hour loss of 0.29%. The second largest cryptocurrency by market capitalization recorded a loss of 3.31% within the last 7 days.
Interest rate decisions by the Federal Reserve may affect the market
Although market participation has been increasing since the beginning of the year, there are important announcements coming this week that will certainly have investors watching closely before any further investment decisions are made. Tonight, the upcoming interest rate decision from the Federal Reserve System (FED) will be of particular interest. The head of the US Federal Reserve, Jerome Powell, will announce the interest rate adjustment.
Even if some voices for a less restrictive policy are already being raised, the analyst The Carter on Twitter believes that the FED will tighten its monetary policy in the last few months and will therefore raise interest rates again on Wednesday. He is therefore skeptical about a possible cut and reflects Powell’s position in December, when the Fed boss announced “not to ease the policy too soon”. With that, he predicts a “bath” on February 1 after the rate reset, especially for those who were expecting rate cuts.
There will be blood on February 1st.
Powell is trying to tighten financial conditions by aggressively tackling rate cuts.
— The Carter (@TheCarter758) January 27, 2023
So this first annual meeting of the Federal Open Market Committee (FOMC) at 8:00 pm could have a strong impact on the market, which will depend on whether the Fed decides to stay the course or its direction a change in fiscal policy. In particular, sharp price corrections for shares and cryptocurrencies could lead to a higher adjustment than the general public expects. The losses in cryptocurrencies over the past 24 hours could therefore be derived from investor reluctance shortly before the FOMC meeting.
Of course, analyst opinions on volatile currencies like Bitcoin differ greatly. Therefore, short-term market analyzes are rather speculative and should be viewed with caution. Even if the month-on-month trend is still positive and the sign was able to climb from $17,000 to over $22,000 in December, not all investors are still convinced about a bull run.
2. #Bitcoin $30k hits again (at some point).
Other than the bounce before the merger, we haven’t had a true bear market rally yet.
I think this is likely to change in 2023.
It may not sustain, but probably a temporary pump to $30k imo.
— Miles Deutscher (@milesdeutscher) January 2, 2023
Miles Deutscher writes on Twitter that Bitcoin will test low resistance again earlier in the year before it can reach the $30,000 mark again. The group of Crypto Technical Analyst analysts remains skeptical about the developments, for those the base could fall below $21,100 again after breaking through $23,000. On the other hand, Crypto Rover is bullish on the long term, saying that it is inevitable that Bitcoin will reach $100,000.
The price had almost reached the bottom of the consolidation range, which is now meant to be a strong support. #BTC it must hold above these levels, otherwise a break below will result in $21,080 – $21,300. pic.twitter.com/KCFh2QM5gA
— Crypto Technical Analyst (@TechCryptoAnlst) January 31, 2023
— Crypto Rover (@rovercrc) January 31, 2023
Bitcoin alternative for early adopters?
Despite the competitive conditions in the market, several new projects are currently promised in the sector whose official launch is still in the preparatory phase. One of them is Meta Masters Guild, which has already raised $2.18 million in pre-sale from investors. This new play-to-earn gaming platform could be an alternative to the known assets.
In the current fourth stage of the pre-sale, the price of the MEMAG token is $0.016. In total, pre-sales will take place in seven phases. The price of the coin has increased by 30% in the current phase compared to the previous phase. In the next step, the price is expected to rise to $0.019 per token.
The developers of the gaming platform have set the goal of becoming the leading provider of blockchain-based games on the Web3. Meta Masters Guild places great importance on a “play-and-earn” approach, which tries to expand the gameplay of the play-to-earn format and put the fun of the game first. Players should be incentivized to continue playing through real rewards and thus reinvest their MEMAG tokens back into the game, for example to further improve their NFT character. Players should also be able to take ownership of their in-game assets. Several games, including a racing game called Meta Kart, are said to be in advanced stages of development. However, the team behind the gold games are keen to bring on board other developers who want to produce games for the ecosystem.
Investors can now become an important part of the project by investing in the token online through its crypto wallet. Early entry can be an advantage if you keep an eye on the ever-growing gaming sector. Therefore, Meta Masters Guild could be a gaming concept worth looking into in the future. However, it should be noted that even projects with supposed interest can be very volatile and a profit with the token cannot be guaranteed, since no estimates of the market value can be made before the end of the pre-sale .