Major currencies traded higher on Tuesday night as global market capitalization rose 1.25% to $1.05 trillion as of 8:30 PM EST.
What Happened: The largest cryptocurrency by market cap, Bitcoin BTC/USD , is trading at $23,118. Ethereum ETH/USD is changing hands at $1,585, up 1% in the last 24 hours. Dogecoin DOGE /USD has risen 4% in the last 24 hours, taking its price to $0.094.
US stocks closed higher on Tuesday as markets awaited the Federal Reserve's decision on a possible rate hike. The Nasdaq Tech Composite rose 1.6%, while the S&P 500 and Dow Jones Industrial Average rose 1.4 and 1%, respectively.
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Bitcoin started 2023 with a 40% gain. But with Fed Chairman Jerome Powell expected to remain hawkish, this rally could suffer. Despite an expected drop in prices, investors and industry experts are optimistic that this could be a temporary pause in the ongoing cryptocurrency bull market.
Analyst Comments : “Bitcoin appears to be holding strong resistance at $24,000, so if the rally stalls after the Fed earnings fireworks and tech mega-caps, there could be a consolidation towards $20,000,” said Edward Moya , Analyst main in OANDA . , see Benzinger Note.
"Wall Street is becoming convinced that this week's Fed rate hike could be the last of this tightening cycle."
Cryptocurrency analyst Tone Was believes Bitcoin could see a major near-term pullback despite impressive January gains. The analyst told his 123,000 YouTube subscribers that BTC would face "serious, serious resistance" at $25,000.
“I expected us to reach $25,000 and that would be a disappointment. As soon as we approach $25,000, the probability of failure is very high... There is room for a dynamic reversal of our indicator, but we are on the verge of a triple resistance monster that will not be easy to break.
According to Mikael van de Poppe , the main resistance level for Bitcoin remains at $23,300.