We have mentioned in our previous news that Bitcoin loves the new years. Being aware of this, the big players started to prepare for the New Year’s activity.
Hopes for Bitcoin, which could not get out of the downtrend it started on November 10, did not run out. Because professional investors think that the Bitcoin price is still not overheating on the on-chain data wing. Experts are focusing on the possibility that the price shifts from overheating to cooling for various reasons, prolonging the 2021 rally and that a new ATH may be seen in 2022.
At this point, some US-based concerns about 2022 are putting a big barrier in front of the purchase of this expectation. The risk of an early rate hike from the FED in 2022 dampens the risk appetite of large investors and institutional buyers.
The Fed stated at its last meeting that it would end asset purchases by March. While some analysts evaluate that the USA, which has been struggling with the highest inflation in the last 39 years, will increase interest rates after March, some analysts evaluate that the threat posed by Covid variants on the economies continues, so this move of the FED may be delayed. Because as long as the Covid concerns continue, the FED is not expected to go on the path of monetary tightening.
The signals that the FED will give at the first meeting on whether the perspective regarding 2022 has changed will be of great importance. The first meeting of the year is expected to be held on January 25-26 and the decisions are expected to be announced on January 26.
We hope that investors who are tired of watching falling markets for a while will get some relief with a New Year’s rally to be experienced until the week when the FED decision is announced.
*Not Investment Advice.