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What Does Data Say About Bitcoin?

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Bitcoin prices rose after the Federal Reserve announced a smaller increase than seen in previous meetings and also indicated that further hikes may be in order. However, the royalties lowered as the dollar rallied and the return of risk aversion, leading to a soft feeling among investors. On Wednesday, the Federal Reserve raised its target federal funds rate by 0.5%, bringing it to a range between 4.25% and 4.5%.

 The decision was in line with Wall Street expectations. According to reports, members of the Federal Open Market Committee do not expect a transition from rate hikes to rate cuts until 2024.

 Bitcoin is currently trading in a bearish direction, although it has broken the important resistance level around $18,150. However, the price of Bitcoin fell below the $18,000 level when the Fed announced that it would raise interest rates. This indicates that it is possible that the current market trend will continue. BTC is trading at $17,708 at the time of this writing, which represents a drop of around 1% in the last 24 hours.

What Does the on-chain Data Suggest?

According to on-chain data, the “Bitcoin (BTC) Spending Output Value Bands: All Exchanges” metric shows that the amount of whale deposits in cryptocurrency exchanges is falling. A, the development of the Bitcoin market is caused by whales that sell their BTC used by transferring them cryptocurrency exchange.

 After a bearish year that saw massive selling by whales and miners, Bitcoin is now entering a pre-halving phase. In fact, it is expected that institutional investors will gradually buy the supply in a manner similar to the collection process that occurred in 2019-20.

 In a related development, according to the results of a survey conducted by a well-known research company, although 2018 was a difficult year for many of the cryptocurrency markets, it does not seem that there will be a shortage of believers in 2023.

The possibility of treatment. Cryptocurrency monitoring website CoinMarketCap is currently conducting a year-end survey. Participants were asked to submit their votes based on whether they expected the coming year to be bad or scary, and more than 80 percent of respondents were right. too “bullish.”

 Is it a Good Time to Buy?

Bitcoin traded in a narrow range between $18,500 and $20,000 between September and October. However, after the dramatic collapse of the crypto exchange FTX, bitcoin fell 26% in one period. For anyone wondering if now is a good time to buy Bitcoin, I would not recommend it. Overall bitcoin macroeconomics is not good. The on-chain/stream numbers for bitcoin are running high.

So if you have a time limit of two to four weeks, it is not the best time to buy bitcoin. Unless you’re looking for long-term benefits. As such, you can buy and be ready to hold it for a few months, when things will be much better.

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