Bitcoin Getting Some Steam, Price Increases to Mote than USD 97,700, Ether in Red

Bitcoin, the largest cryptocurrency by market value, had some rise on Friday. Its price was up more than 1.6 percent at more than $94,700. The Federal Reserve may step back from rate cuts due to signs of a strengthening economy in America. This has affected the crypto market.

The second-largest cryptocurrency was down more than 0.60 percent. At the time of writing this report, the price of Ether was trading at around $3,292 on the international crypto exchange Binance. Other cryptocurrencies to decline included Solana, XRP, Cardano and Polkadot. In the last one day, the market capitalization of crypto had declined by more than one percent to about $ 3.26 trillion.

Market experts say that Bitcoin is trading in a range due to investors being cautious. There is a major resistance for Bitcoin at $95,900. Its support is around $91,200. Bitcoin’s share in the crypto market is about 56 percent. The interest of institutional investors in this most popular cryptocurrency is increasing. Enterprise software maker MicroStrategy purchased large amounts of Bitcoin for the eighth consecutive week in late December. It is the company with the largest holding of Bitcoin. MicroStrategy holds approximately 4,46,000 Bitcoins.

Recently this company had said that it can buy Bitcoin by issuing more shares this year. However, questions are also being raised on MicroStrategy’s strategy of buying Bitcoin by selling shares. During the presidential election campaign in America, Donald Trump had hinted at creating a reserve of Bitcoin. The Federal Reserve says it does not intend to get involved in an upcoming government plan to create a large stockpile of Bitcoin. Russian companies are using Bitcoin in their business abroad. Russia had changed the law to allow the use of cryptocurrencies to deal with the restrictions of Western countries. Russian President Vladimir Putin had said that the US government is reducing the role of the US dollar by using it for political purposes. Because of this many countries are having to turn to other assets.