Bitcoin (BTC) is in a struggling mood this week as the weekly close gives bulls hope and dispels a few weeks of negativity. So, can prices go higher? What can affect prices? cryptocoin.com As a result, we’ve compiled a list of topics that could impact Bitcoin and the cryptocurrency market in general this week. Here are the details…
Bitcoin seems to have survived the big crash
Bitcoin held onto $40,000 as support over the weekend. Analysts wanted $41,000 to be created as a longer-term basis going forward. Trader and analyst Pentoshi said on Sunday, “This is how I see things. As long as BTC holds 39k (as previously stated), the annual opening will come.” However, he thinks that 80 percent of altcoins will lag behind BTC performance, while 20 percent will follow. Annual opening for 2022 is around $46,200. Fellow analyst and trader Credible Crypto believes the recent action could provide evidence that Bitcoin has begun its fifth in a series of impulse moves stretching back several years.
January CPI data will be announced in the USA
Stocks provided the springboard for Bitcoin’s exit from the $30,000-40,000 corridor last week. Among major technologies, the story was one of Amazon’s gains and Meta’s losses, providing an interesting dilemma that Bitcoin eventually used to its advantage. Stocks are not alone as oil continues its own gains and the inflationary narrative rises with it. Veteran trader Peter Brandt looked at US bonds on Monday, saying, “Inflation will destroy the Fed. Inflation is REAL,” he said.
He added that inflation remains extremely modest compared to events in the last century, but there may still be a long way to go to climb. Meanwhile, the data shows that Bitcoin’s Nasdaq correlation is slowly decreasing. On Thursday, January consumer price index (CPI) data will be released at around 16:30, which could provide further headwinds for inflation if the figures fall outside the forecast. Expectations were announced as 0.5 percent on a monthly basis and 7.3 percent on an annual basis.
Report on stablecoins will be published
The House of Representatives Committee will hold a meeting on digital assets tomorrow at 18:00 Turkish time. The Financial Markets Working Group will report at the meeting on stablecoins that are pegged at a ratio of 1:1 to a given fiat currency, which worries US regulators.
Will the dollar continue to fall?
After crossing 97 for the first time in over a year, DXY faced solid resistance and has now dropped below 95.6 again. With a short drop in mid-January, this represents its lowest level since mid-November. Analyzing the current order, trader Bob Loukas was skeptical. He stated that movements in the USD could be a trap. Bitcoin has traditionally been inversely related to DXY, and any sharp turn to the upside could easily weaken its price strength.
Analyst Michaël van de Poppe similarly said, “I’m not going to lie, but it looks like DXY is looking for a more drastic correction.” He pointed out that the European Central Bank’s (ECB) postponement of interest rate hikes put more pressure on the dollar. If DXY shows more weakness, that would be a good signal for Bitcoin and risky assets.
Short-term Bitcoin investors start to make profits
As noted by on-chain analytics account Root, the portion of the BTC supply controlled by short-term holders is starting to move up after falling to levels that coincide with macro price drops. “Probably macro bottom,” Root commented on Monday. Meanwhile, the output profits ratio (SOPR) for short-term holders jumped above the 1 mark for the first time since Christmas this weekend. Values from the bottom to 1 indicate that short-term holders are starting to sell on average at a profit rather than a loss.
Another meeting for cryptocurrencies: Experts attend
On Wednesday, there will be a meeting attended by the Chairman of the Commodity Futures Trading Commission (CFTC) and Sam Bankman Fried, CEO of the famous crypto derivatives platform FTX. At this meeting, the risks, regulation and innovations of digital assets will be discussed. Expectations are that CFTC Chairman Rostin Behnam will want to increase his authority over cryptocurrency regulation.
Does sentiment towards Bitcoin and altcoin market get rid of “fear”?
Having spent most of the last month in the “extreme fear” zone, the Crypto Fear and Greed Index is now on the verge of getting rid of the “fear” completely. It marks the first time the index has started to slide into “neutral” territory since record lows in November. A week ago, the Index was standing at 20/100, while current levels rose to 45/100.
Disney to announce earnings report, Bloomberg holds panel
Although the world-famous company Disney does not have much to do with Bitcoin, it is expected to announce the moves it has made / will make towards the recently popular topic of the metaverse in its earnings report. It is a matter of curiosity how this situation will affect the metaverse coins in the crypto money field. Apart from this, Bloomberg, one of the leading financial institutions, will hold various panels on Friday where topics related to cryptocurrencies and NFTs will also be discussed.
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