Bitcoin Faces Resistance at $43,000
If you’ve been following Bitcoin, you know that the cryptocurrency is struggling to break the $43,000 barrier. The recent dip is being attributed to the Federal Reserve’s stance on interest rates. Altcoins are also facing their own challenges, but all eyes are now on the significant US economic data releases starting February 5, as noted by The Kobeissi Letter.
Thursday: Key Data Releases and Central Bank Insights
On Thursday, you can expect the release of S&P Services PMI, ISM non-manufacturing PMI data, and anticipated jobless claims data, which will guide market reactions. Additionally, over half a dozen US Central Bank members, including Neel Kashkari and Loretta Mester, will deliver speeches, offering insights into the central bank’s thinking and potential impacts on future policies.
Powell’s Update and Yellen’s Testimony
Investors will be closely monitoring the aftermath of Jerome Powell’s statement regarding the unlikelihood of a rate cut in March. Treasury Secretary Janet Yellen will also testify on Thursday, sharing the department’s annual report on US financial stability.
Industry Updates
The sentiment in the crypto market is a mixed bag, with major altcoins showing limited activity. The market has cooled, with a 1.3% drop in total capitalization to $1.7 trillion. Bitcoin is struggling at $42,437, while Ethereum slipped slightly to $2,296.92 but saw a 35.20% increase in trade volume to $5.80 billion. Altcoins like XRP, Solana, and Cardano experienced fluctuations without significant impact.
Focus on Key Industry Earnings
With fewer major economic reports this week, investors are focusing on earnings from key industries like retail, food, automotive, entertainment, and pharmaceuticals. These updates will provide insights into the performance of these crucial sectors.
Hot Take
As Bitcoin faces its challenge, the broader market is on alert, looking to the unfolding economic events that could shape the weeks ahead.
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