After a week of positive news, Bitcoin (BTC) has bounced back to $43,000 and is aiming for the $50,000 mark as analysts expect more gains ahead.The rise of BTC comes as U.S. lawmakers question the SEC’s authority over cryptocurrencies, showing Bitcoin’s strength in the face of regulatory uncertainty.
Despite a more upbeat outlook, the Fed’s decision to keep interest rates unchanged in March also adds to the factors affecting Bitcoin price predictions.Moreover, the upcoming launch of Victoria VR’s Metaverse app for Apple’s ‘Vision Pro’ shows the growing connection between cutting-edge technologies and cryptocurrencies, which could boost Bitcoin’s upward trend.
These factors create a strong Bitcoin price prediction, reflecting the high hopes and resilience of the digital currency in a complex and changing world.
How SEC Rules Could Impact the Crypto Market?
The SEC’s cryptocurrency rules are under scrutiny by U.S. politicians, who may not directly impact Bitcoin (BTC) prices.But this challenge shows a growing effort by lawmakers to shape the crypto regulations, which could affect the broader regulatory framework.
There is bipartisan agreement SAB 121 undermines consumer protection and leaves customers’ digital assets vulnerable.
I look forward to getting this measure across the finish line to overturn it.
Thanks to @USRepMikeFlood, @RepWileyNickel, and @SenLummis for your leadership. https://t.co/otlpBnnMWW
— Patrick McHenry (@PatrickMcHenry) February 1, 2024
If they overturn Staff Accounting Bulletin 121 (SAB 121), they could ease the restrictions on banks holding cryptocurrencies, encouraging more institutional involvement. Therefore, better regulatory clarity and support could draw more investors to the crypto market.
Although the immediate effects on BTC prices are unclear, a more favourable regulatory environment could improve cryptocurrencies’ long-term trust and adoption.The U.S. Federal Reserve has decided to hold the benchmark interest rate steady at 5.25%–5.50%, surprising the market expecting a possible rate cut in March.
The Fed has adopted a prudent approach, saying it will only change the rates if there is clear evidence of inflation being under control. This has lowered the chances of a rate cut from 65% to just over 50%.
Bitcoin’s price did not react much to the Fed’s announcement, staying around $43,163. However, the Fed’s future actions, which may differ from what investors anticipate, could affect the market conditions, especially for assets like Bitcoin, by changing the investor mood.
Victoria VR’s Metaverse App to Launch on Apple’s ‘Vision Pro’
In another development, Victoria VR, a Web3-enabled app that allows users to create and explore virtual worlds, is set to launch on Apple’s ‘Vision Pro’, a new device that combines augmented and virtual reality.
This shows how blockchain and cryptocurrency innovations are quickly becoming part of mainstream technology products. This may not have a direct impact on Bitcoin’s (BTC) price, but it shows the growing adoption of blockchain-based applications.
The increasing interest in metaverse projects could also create a more positive environment in the cryptocurrency community, which could affect the overall market sentiment towards Bitcoin and make it more attractive in the context of emerging tech and digital currencies.
Bitcoin Price Forecast
Bitcoin is trading around the $43,097 level, facing resistance at the upper trend line of the triangle pattern, around $43,375. A decisive break above this level could push the cryptocurrency to higher resistance levels, possibly leading to more gains.
The 50-Day Exponential Moving Average (EMA) at $42,940 acts as a support, close to the lower trend line of the triangle, making it a critical support.
The Relative Strength Index (RSI) is around 54, showing a neutral market sentiment without a clear direction. Given the pattern’s convergence, BTC is at a point that could trigger significant price movement. A bullish break above $43,375 could start a rally, while a drop below the crucial $42,950 could indicate a bearish turn.
