After a 38% increase in January, the Bitcoin rally lost momentum and the largest cryptocurrency in the market closed the month of February with a small 2% increase. For March, the challenges remain the same, breaking the $25,000 mark as regulatory pressure mounts.
Even if the numbers weren’t as high as last month, it doesn’t mean Bitcoin is bad, quite the opposite. Its closest rival, gold, ended the month down 5.27%. The S&P 500, the index that brings together the 500 largest companies in the US, also ended February at a low of 2.45%.
Therefore, Bitcoin appears to be holding up under the pressure of monetary policy from central banks, which insist on raising interest rates to control the inflation of their fiat currencies.
Challenges for Bitcoin in March are the same
Trading at USD 23,750 at the time of writing, Bitcoin still has the same mission for March: to break the USD 25,000 resistance.
Although the zone was tested between February 16 and February 21 and peaked at $25,270, the bulls could not win the fight and the cryptocurrency fell as low as $23,000 in the following days.
According to a quarterly report published by the BIS (Bank for International Settlements) last Monday (27), central banks should keep interest rates high throughout 2023 and not believe that the battle against inflation has already been won.
So this suggests that Bitcoin and other assets will not have an easy year. Still, a global crash could provide a strong story for BTC to take off, as noted by Arthur Hayes.
Cryptocurrency market regulation in focus
Finally, the movement of global regulators is also another point that investors should observe. In February, the US government banned the issuance of new tokens for, for example, the stablecoin BUSD, causing the cryptocurrency to lose $6 billion in market value.
Despite the recent regulatory pressure, the SEC Chairman has some good news for Bitcoin investors. According to Gary Gensler, BTC would be the only asset classified as a commodity, i.e. it would not be subject to SEC scrutiny.
Everything indicates that the US government will focus on stablecoins and alternative cryptocurrencies throughout the year. Free way for Bitcoin, which can benefit from this possible capital inflow.
Anyway, as mentioned earlier, the main focus is on the graphics. If Bitcoin breaks $25,000, analysts point out that we will enter another major bull cycle. So this is the mission of the bulls for this month of March.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
