Summary:
Bitcoin price currently at $101,300, slightly down after a 4% rally.
Michael S. Barr's resignation positively impacts BTC, pushing it above $100K.
Bitfinex reports robustness in Bitcoin, but warns of potential pullback.
Bitcoin closed above $102,000, reflecting strong market sentiment.
Tightening supply and miner activity suggest bullish momentum for Bitcoin.
Bitcoin Price Update
Bitcoin price today: $101,300. After a rally of nearly 4% the previous day, it has edged slightly down.
- The announcement of Michael S. Barr’s resignation as Fed Vice Chair for Supervision has notably pushed BTC above the $100K mark.
- According to a Bitfinex report, Bitcoin remains robust, although a potential deeper pullback in Q1 is still on the table.
Bitcoin Surges After Fed Announcement
Bitcoin has closed above $102,000 following Barr's resignation. This significant move reflects the positive impact on the crypto market, as Barr's stringent regulatory approach has raised concerns among investors. His departure is anticipated to ease fears of strict regulatory changes during President Biden’s remaining time in office.
“Barr’s resignation will officially be effective on February 28 or earlier as a successor is confirmed.” - Fed’s press release.
The Bitfinex Alpha 2025 report indicates a tightening supply of Bitcoin, with the Liquidity Inventory Ratio dropping from 41 months to 6.6 months in January. This suggests a significant decrease in available liquidity, which aligns with the rally observed in late 2024.
Bitcoin Miners' Activity: Since the Bitcoin Halving event in April 2024, miner selling has declined significantly, indicating reduced selling pressure.
Price Forecast: Bitcoin Eyes $108,000
Currently trading around $101,300, if Bitcoin holds the $100K level, it may extend its rally to retest the all-time high of $108,353 from December 2024.
- The Relative Strength Index (RSI) shows bullish momentum, reading 59, while the MACD flipped to a bullish crossover, signaling a continuation of the uptrend.
However, if BTC falls below the $100K mark, it may test the 38.2% Fibonacci retracement level at $92,493.
FAQs
What is Bitcoin? The largest cryptocurrency by market capitalization, designed to serve as money without third-party control.
What are Altcoins? Any cryptocurrency apart from Bitcoin, with Ethereum often regarded as a non-altcoin.
What are Stablecoins? Cryptocurrencies designed to maintain a stable price, often pegged to traditional assets.
What is Bitcoin Dominance? The ratio of Bitcoin's market cap to the total market cap of all cryptocurrencies, indicating investor interest.
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