Cryptocurrencies such as Bitcoin (BTC), Shiba Inu (SHIB), Dogecoin (DOGE) are starting a new week. As the importance of Bitcoin and altcoins’ relationship with traditional assets has emerged, the US Federal Reserve (FED) statements are in the focus of the people. In addition, geopolitical turmoil continues and there is a focus on developments in Europe. There is thought to be plenty of uncertainty in the air. So, will Bitcoin and altcoins benefit from this chaos? What will happen this week?
How are Bitcoin, SHIB, DOGE affected by geopolitical situations?
The Fed is the likely leader when it comes to crypto performance this week. On Wednesday, policymakers will decide whether to continue with the key rate hike expected since last year. With inflation soaring, the small rate hike is said to be only modest, but the consequences could still be significant for Bitcoin and altcoin users. BTC has shown a tight hold on US equities and any reaction from the Fed is thought to affect the market.
Analyst firm Santiment said, “This week will be big for crypto and equity investors as the Fed is expected to decide on a quarter-point rate hike this week. “Bitcoin and Ethereum are pegged at SP500 in 2022 and these decisions should greatly impact cryptocurrencies.” However, the Fed is not the only macro player that Bitcoiners should worry about. While Russia-Ukraine tensions continue, meanwhile in China, the coronavirus itself is on the radar again.
MiCA voting will take place in the EU
cryptocoin.com As we reported in the morning hours, lawmakers in Europe are preparing to vote on the cryptocurrency law, with some trying to ban proof of work (PoW) protocols citing environmental concerns.
It’s been two years since Bitcoin “crashed” by coronavirus panic
“We haven’t seen the capitulation collapse yet compared to every other macro drop we’ve seen,” said popular Twitter account Crypto Tony. Such a capitulation move has already been voiced as a sure possibility, and it would have been pretty brutal if it happened, almost exactly two years after BTC/USD dropped to $3,600 in the first round of coronavirus turmoil.
Analyzing near-term prospects, Plan C talked about the Confluence Floor model and concluded that a macro price bottom could happen next month. However, such a low could drop to $27,000 and briefly push Bitcoin below its 2021 opening price and out of the range it has consolidated since then. “I’m not convinced we went to $27,000, but if history repeats itself for the 4th time in a row, this could be the lowest of the accumulation phase,” Plan C said in the Twitter comments.
Are we in the accumulation phase in Bitcoin?
As far as accumulation is concerned, it seems all is not bad when it comes to demand for Bitcoin at current prices. While whales have been active in recent days, the proportion of total BTC supply controlled by smaller investors has reached a one-year high. The changes were noted on Monday by Philip Swift, creator of ten chain analytics resource LookIntoBitcoin.
Separate data from CryptoQuant confirms the trend and shows that BTC balances from the 21 major exchanges it covers are at their lowest combined level since the beginning of August 2018 – 2.32 million BTC. The latest Glassnode data shows that exchanges lost another $1.9 billion in BTC last week.
Sentiment in Bitcoin, SHIB, DOGE market does not affect anyone
Bitcoin, SHIB, DOGE and broader crypto sentiment are definitely pointing downhill this week. After two months of fake outs, the bulls seem to be getting tired. Twitter analytics account On-Chain College summarizes, “Bitcoin sentiment is now worse than July 21st and price is now above $8,000 from July 21 low.” Cane Island Digital Research highlighted that volume is another revealing sign that momentum is falling from Bitcoin. Meanwhile, the Crypto Fear and Greed Index stays in the “extreme fear” zone near the 20/100 mark.
Bitcoin bonds expectation from El Salvador
In the eyes of the markets, there is also the Bitcoin bonds that El Salvador announced in November. Although there was a lot of news on this subject over the weekend, there was no official statement. The exact date for the issuance of the bonds, which are expected to attract $1 billion, is unknown, but doubts are growing that it could arrive this week.
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