Bitcoin has dropped by 1.90% in the last 24 hours. As of 10:27 AM GMT+3, Bitcoin was trading at $42,189. Trading volumes were up by 14.31% to stand at $25.96 billion.
Bitcoin’s price drop follows an announcement by the FOMC that there was no chance of an interest rate cut in March. The news affected Bitcoin and all major indices, including the S&P 500 and the NASDAQ.
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The market reaction is based on the fact that high interest rates usually mean a higher cost of credit. This, by extension, prevents investors from making big bets on risky assets.
Despite hopes of short-term rates drop out of the window, long-term Bitcoin holders are unperturbed. Glassnode note data shows that the supply of Bitcoin held by long-term holders is at an all-time high.
Source: Glassnode
It is a signal that investors expect Bitcoin to continue doing well despite short-term noise, such as that related to the date when interest rates will start coming down.
Bitcoin Finds Critical Support At $42k, A Sign of Resilience
After an initial increase in selling volumes following the FOMC news, bears were quickly pushed back as Bitcoin’s price rallied above $42k.
#Bitcoin remains at the value area & the longer it stays there the better for future exponential price appreciation ✍️
Have patience, it’s worth it. Do not jeet your bags too early. Do not panic. Keep your eyes on the prize pic.twitter.com/ZuYkFksYqq
— JACKIS (@i_am_jackis) February 1, 2024
However, Bitcoin is not out of the woods yet, as buying volumes in the last 24 hours have been low. This is evident in the sluggish upside price movement after the initial reversal to $42k.
For the bullish momentum to be confirmed, Bitcoin must rally through $42,645, a critical resistance level in the short term.
Bitcoin Price Prediction: A Reason To Be Bullish
The fact that Bitcoin bears were rejected, with high volumes at $42,000, is a bullish signal. It indicates that even under the current interest rates environment, investors do not expect Bitcoin to go much lower.
Besides, now that the interest rate news is already priced in, investors can focus more on the positive news for Bitcoin. One of the most important ones is the Bitcoin halving, which has historically triggered Bitcoin rallies to new all-time highs.
For this reason, traders could be looking to add their Bitcoin holdings in anticipation of the next rally. That said, altcoins are largely expected to outperform Bitcoin in the next hype cycle. For this reason, some investors could consider high-potential altcoins like LCX tokens.
LCX Token, A High Potential Utility Token With A Low Market Cap
LCX Token has gained investor interest following the new crypto regulations in Europe called MiCA. Not only do the regulations make it clearer for crypto operators, but they also give an edge to already regulated crypto exchanges like LCX exchange.
LCX token, being the utility token of the LCX exchange, is in a unique position due to the increased traffic that the exchange could receive going forward. This is already reflected in the price, up by 46% in the past week alone.
Investors are also loving the utility part of it. Unlike meme coins, which are mainly hype-driven, the LCX token has an actual use case within the LCX exchange ecosystem. It’s pretty much the same utility that other top exchange tokens that have done well in the past possess. One of the most notable ones is Binance Coin (BNB).
LCX has also triggered excitement because its market cap has grown enough to push it to the top 250 cryptocurrencies. This gives the token more visibility and could help draw in more investors, especially now that investors expect the new EU regulations to favor already regulated exchanges like LCX.
Amazing Tokenomics
Besides the hype around the new EU regulations, LCX token has some impressive tokenomics. There are only 771 million LCX tokens in circulation and a total supply of 950 million tokens.
This is relatively low compared to a huge number of cryptocurrencies out there. It gives the LCX token significant room for growth, especially in an all-out cryptocurrency bull market.
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