• The economy is cooling less than anticipated, leading to a minor correction in the price of Bitcoin.
• Bitcoin was trading at an average of $22,846 at the time of writing, with its 24-hour high and low standing at $23,200 and $22,709 respectively.
• A surge in Bitcoin’s trading volumes could be driving recent price action and some are still expressing confidence in the coin.
Overview
The economy is cooling less than expected, leading to a minor correction in the price of Bitcoin. The coin currently trades at an average of $22,846 and has a 24-hour high and low of $23,200 and $22,709 respectively. A surge in Bitcoin’s trading volumes could be driving recent price action and some investors are still expressing confidence in the coin.
Economic Factors Affecting Price Action
The job market has soared, inflation rates are high, and the housing markets are unstable – these macro factors have all had an impact on Bitcoin’s price action. At the beginning of last week (Feb 1st), BTC dropped to a mere $22,700 which caused a contagion that impacted many other assets and led to downtrends across the general crypto market cap.
Price Surge Followed by Bearish Turn
Despite starting off last week on a downturn, Bitcoin recovered quickly hitting its six month high value per bitcoin on Feb 2nd ($24150). However this surge was short lived as BTC took a bearish turn on Feb 3rd as the weekend loomed closer. Just over 24 hours ago (Feb 5th), BTC was trading back down at $$23400 mark again before continuing to drop today where it stands now at $22846 as of writing this article.
Volumes Surge During Price Drop
Interestingly enough while prices have been dropping recently trading volumes have been surging hitting highs of nearly 21 billion dollars over the past 24 hours – an increase close to 42%. This could be what is driving recent price actions with some investors expressing their continued confidence in BTC despite current drops in value.
Conclusion
Bitcoin’s currentprice direction indicates impending correction despite investor confidence remaining strong during periods when prices dip slightly lower than usual. With macro economic factors affecting its value movement it remains uncertain how far or long these corrections may continue for however one thing remains certain; investors remain confident about BTC as it continues to trend positively within financial markets today.