Bitcoin is continuing its remarkable run, having surged to four-month highs above $21,500. BTC remains the most well-known and largest cryptocurrency in the market, making it a top pick among investors.
However, a wide range of factors could be responsible for their upward trend. The markets responded to China’s GDP data, which was stronger than predicted and seen as one of the key factors that boosted the majority of cryptocurrencies, including Bitcoin.
Everything has been working in favor of digital assets, such as better-than-expected GDP figures for China, increased activity on the Bitcoin blockchain, a drop in inflation, and institutional crypto development.
China Announces Impressive 3% GDP Growth For 2022
China announced 2022 GDP growth that was higher than anticipated due to much better-than-expected December retail sales. According to Tuesday’s National Bureau of Statistics report, the GDP increased by 3%. That was better than the 2.8% prediction from Reuters polls.
Thus, the positive data was seen as one of the primary factors that had a positive impact on digital currencies such as Bitcoin.
Increased Activity on the Bitcoin Blockchain
Another factor contributing to the rise in Bitcoin prices is the increased activity on the Bitcoin blockchain. According to statistics from cryptocurrency analytics company Glassnode, the number of transactions recorded on the Bitcoin blockchain increased to over 300,000 on Saturday, January 14th, the highest level since April 2021.
Bitcoin Mining Difficulty Rises
Last week, Bitcoin mining difficulty increased by more than 10% to 37.59 trillion, a new all-time high. However, increased mining difficulty indicates blockchain network expansion and activity, which helps to improve Bitcoin prices.
The global market has been flashing green, supported by multiple factors, and is on the brink of hitting the $1 trillion mark in the global cryptocurrency market. This could be due to macroeconomic factors, such as easing inflation and a slowing US economy.
Furthermore, the cryptocurrency market was bolstered after Binance revealed plans to provide stronger and more secure custody options to institutional investors, while Thailand’s security agency proposed a robust crypto custody framework.
Therefore, this development indicates that institutional demand for cryptocurrency is increasing.
The US Retail Sales Report: How Bad Is It Really?
Another factor attributed to Bitcoin’s positive performance was the fall of the US dollar. Wednesday saw a sharp drop in the US dollar as economic data showed that America is experiencing weakening, despite Federal Reserve’s recent rate hikes.
According to the Commerce Department, retail sales dropped by 1.1% in December from the previous month – the biggest monthly plunge in a year and two months of dwindling sales. November’s retail sales were downgraded from their initial number – now standing at a 1% decrease, suggesting a sluggish end to the holiday shopping season.
Consequently, this caused a broad-based US dollar weakness which further contributed to Bitcoin pricing.
Bitcoin Price Prediction
Bitcoin’s value stands at an impressive $21,438.50 as of now, with a massive trading volume of $24 billion within the last 24 hours. Additionally, it rose 1.25% during this period of time. Bitcoin is one of the most popular and valuable cryptocurrencies in the world and its price has been steadily increasing over the past few months.
Bitcoin Price Chart – Source: Tradingview
Unfortunately, the cryptocurrency market couldn’t breach the $21,400 mark and ended shortly below the $20,000 line. If it remains around this price in its closing candles, it could be a bearish indication of a weakening buyer base and increasing seller forces in the market.
Looking at indicators like the RSI and the MACD, they are both considered overbought which may lead investors to expect a price correction of BTC.
If Bitcoin drops below its immediate support of $20,800, it could lead to a selloff and push prices further down toward $20,000. Bitcoin could potentially drop further to around the $19,250 point before stabilizing. If there is an increase in demand, it might surpass the $21,400 mark and reach even up to $22,850.
Top Cryptocurrencies To Invest In Now For Maximum Gains
Bitcoin has lately experienced a minor bearish correction, however, it is still worth investing in. Moreover, there are some other crypto coins that could be wise to buy now.
META MASTERS GUILD (MEMAG)
Meta Masters Guild is a mobile-focused gaming guild that will produce a variety of Web3 and play-to-earn games, with its debut game set to launch in Q3 2023. The native token, MEMAG, will be used for voting, staking, and buying products and NFTs.
The Meta Masters Guild presale has already reached $573,000, with about $110,000 raised in the last 24 hours. This rate of growth indicates that the market is growing more confident in the play-to-earn gaming platform’s future profitability and success.
For those interested in investing in the MEMAG Sale, there are seven stages and the current phase offers 1 MEMAG for only $0.007. This opportunity won’t last long, so this is your chance to purchase the coin at a very low rate! It’s expected to rise within the next three days, so don’t miss out on this great deal.
Fight Out (FGHT)
FightOut (FGHT), a move-to-earn platform that runs on the Ethereum network, will combine Web3 with physical training when it debuts in the second quarter of this year. It will be able to track and recognize a variety of exercises, such as boxing, weightlifting, and yoga, and it will also provide a variety of in-app and in-person classes at its own branded gyms.
FGHT token, during the presale, was on sale at the cost of $0.0166 and has already made close to $3 million in sales.
The company started its presale in December. The sale is scheduled to expire in Q2 2022, and many exchanges, such as LBANK and BitForex, have already confirmed their plans to offer the new coin.
Dash 2 Trade
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The new cryptocurrency trading platform, Dash 2 Trade, had an incredible run, selling out all of its presale tokens. However, the value of Dash 2 Trade has increased dramatically, as it can now be traded on CEXs. The D2T token’s value increased by 33% in less than a week, due to investors recognizing its enormous potential.
Dash 2 Trade is offered by Gate.io, LBank, BitMart, and Changelly Pro CEXs. Therefore, decide which CEX is best for you and take advantage of the incredible investment potential.
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Disclaimer: This is a paid release that was not written by Crypto Online News. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of Crypto Online News. Crypto Online News does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.
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