Bitcoin and Ethereum both failed to sustain the momentum they had gained and dipped past the $23,000 and $1,600 marks, respectively. This affected the overall cryptocurrency market value, as it decreased by 3.52% to reach a total of $1 trillion.
Since the beginning of 2023, the cryptocurrency markets have grown, with Bitcoin values increasing by more than 40% in recent days. However, Bitcoin’s rise appears to be fading as it has begun to fall below $23,000.
However, their recent downward trend could be attributed to reports indicating a surge in cryptocurrency scams last year, resulting in approximately $1 million stolen in the communities of Swift Current and Maidstone alone.
Moving on, traders appear hesitant to place any strong bids ahead of this week’s economic growth data from the United States.
The market is now focused on fourth-quarter US GDP figures due on Thursday, which could set the tone for the Federal Reserve’s policy meeting on January 31-February 1.
The Fed is expected to raise interest rates by 25 basis points (bps) during its policy meeting the following week, according to the majority of investors.
If there are signs that the US economy is slowing and that the Fed will soon pause its tightening cycle and lower interest rates, the value of cryptocurrencies may rise.
Some algorithmic price prediction sites are anticipating a small pull back for BTC, but for it to hold strong above the $20k level. According to CoinCodex, Bitcoin will revisit the $20.8k level in February.
Rise In Cryptocurrency Scams
According to the Saskatchewan RCMP, the Swift Current and Maidstone areas lost nearly $1 million due to an increase in cryptocurrency fraud last year. The RCMP in Swift Current received reports from 105 citizens that they had been the victims of fraudulent phone calls, several of which involved bitcoin.
According to sources, the scams cost the victims in the region a total of $360,000. Victims lost a total of $570,000 in 37 allegations of cryptocurrency scams to the Maidstone RCMP.
It is also worth noting that the scammers employed a variety of techniques, including deceptive advertising, authority fraud, and phony courses purporting to teach people how to trade cryptocurrencies.
In addition, the Federal Bureau of Investigation reported that two cyber organizations linked to North Korea, the Lazarus Group and APT38, were responsible for the theft of $100 million from American crypto company Harmony’s Horizon bridge in June.
Binance Gave Bitzlato $346M
Binance processed approximately $346 million in bitcoin for the Bitzlato digital currency exchange, the creator of which was arrested by American authorities last week on suspicion of running a money-laundering engine.
According to the US Treasury’s Financial Crimes Enforcement Network (FinCEN), Binance, the world’s largest cryptocurrency exchange, was one of Bitzlato’s top three counterparties in terms of bitcoin received between May 2018 and September 2022.
As a result, this news has had little impact on the crypto market so far.
ARK Invest CEO Predicts Crypto Asset Growth
According to the CEO of cryptocurrency and technology investment firm ARK Invest, the value of crypto assets will change significantly this year due to a drop in inflation and a change in the Fed’s monetary policy.
As a result, this could be viewed as a positive for crypto assets, assisting them in limiting their losses.
Unlocking The Potential Of Bitcoin Micropayments For Content Platforms
Another factor that may support the cryptocurrency market is the news that the cryptocurrency has gained traction in a number of areas, allowing users to micro-monetize their actions.
ZEBEDEE, a financial services provider, and Fountain, a value-for-value podcasting platform, announced a new partnership on January 24 to enable Bitcoin (BTC) micropayments for podcast viewers.
Meanwhile, the integration of debit and credit card connections enabled by the partnership with ZEBEDEE allows clients to benefit from them without prior knowledge of cryptocurrency.
Bitcoin is currently valued at $22,667 and has a $27 billion 24-hour trading volume. Bitcoin has dropped nearly 1.50% in the last 24 hours. With a live market worth of $437 billion, CoinMarketCap presently ranks top.
Bitcoin fell to a support level of $22,325 and the closing of doji candles above this level indicates that a bullish bounce-off is still possible.
On the upside, the immediate resistance level for Bitcoin is $23,250, and a break above this level could expose BTC to levels as high as $23,900 and $25,150.
Bitcoin Price Chart – Source: Tradingview
On the downside, a bearish breakout of the $22,325 level has the potential to extend the selling trend until the $21,500 barrier is reached. If Bitcoin falls below $21,500, it could fall as low as $20,450.