Bitcoin falls to $42,000 level as interest rates soar – Chainlink rises even as crypto asset market declines | CoinDesk JAPAN

• The crypto asset market fell on the 5th as interest rates in the United States soared on the back of strong economic indicators and hawkish remarks by Federal Reserve Chairman Jerome Powell weighed on the market. Bitcoin is nearing $42,000.
• Marcus Thielen said Bitcoin could rise to $70,000 by the end of the year, benefiting from a favorable macro environment.

The crypto asset (virtual currency) market fell on the 5th as interest rates continued to rise in the United States. The move comes against the backdrop of strong economic data and repeated hawkish statements from Federal Reserve Chairman Jerome Powell since last week.

Most crypto assets fall

After hitting a high of $43,400 on the 5th, Bitcoin (BTC) fell to $42,200 (approximately 6.33 million yen, converted at 150 yen to the dollar). At the time of writing, it was down 1.2% over the past 24 hours.

On this day, almost all crypto assets have fallen by the same amount or more. The CoinDesk 20, which measures the overall performance of the crypto asset market, also fell by 1.3%, with 18 of the 20 crypto assets that make up the index declining. Chainlink (LINK) rose about 2%, making it the biggest gainer among the stocks.

Yields rise due to Powell’s remarks and economic indicators

The decline in crypto asset prices came as the yield on the 10-year US Treasury note rose 14 basis points on the 5th, extending its rise in the past two days to 30 basis points.

The rise in yields was spurred by Chairman Jerome Powell’s appearance on a news program on Wednesday night, in which he confirmed that the Fed has little intention of cutting interest rates in March, as markets had previously expected.

Following the employment statistics on the 2nd, which far exceeded expectations, economic indicators were released on the 5th that showed even more solidity. The US ISM Non-Manufacturing Business Conditions Index rose to 53.4 in January compared to 50.5 in December, exceeding expectations.

The S&P 500, the major US stock index, and the tech-heavy Nasdaq 100 both closed slightly lower.

Bitcoin will reach $70,000 by the end of the year

Despite this drop, Bitcoin still remains above $42,000, an important price support line for buyers to intervene. However, risk appetite is currently low due to the lack of fresh investment narratives in the crypto market, SwissBlock analysts said in a report on Monday.

The report notes that “the inherent upside in crypto markets such as Bitcoin ETFs has been exhausted and players are waiting for the next significant signal.”

Markus Thielen, analyst at 10x Research and head of research at crypto service provider Matrixport, predicts that Bitcoin will reach $70,000 by the end of 2024. We expect it to rise to This is about 65% higher than the current price.

“We believe this is supported by the macro environment, financial tailwinds, the US election cycle, and the gradual increase in demand from traditional finance (TradFi) investors directing funds to Bitcoin ETFs,” Tillane said on Tuesday. It is highly likely that Bitcoin will rise to $70,000.”

｜Translation and editing: Rinan Hayashi
｜Image: CoinDesk
｜Original text: Bitcoin Slips Towards $42K as Interest Rates Soar; Chainlink’s LINK Defies Crypto Slump