5 factors Bitcoin investors should watch this week

Bitcoin (BTC) started the new week by confirming that $ 30,000 was a strong support but also not finding the necessary confidence from the mainstream. So what’s next?

Cointelegraph looked at five factors that could affect the Bitcoin price movement in the coming days.

Analyst warned: “Stock markets are at risk of explosion”

Stock markets started the week with a clear upward momentum. The Hong Kong stock exchange, which has become the new favorite of Chinese investors, is leading this rise.

Market sentiment gained strength after US President Joe Biden announced a $ 1.9 trillion coronavirus stimulus package earlier this month. This trillions of dollars to be put into the market triggered the stock markets, which were already close to the record, to rise further.

Bitcoin Price Index: 1 Bitcoin How Many TL? (BTC TL)

Bannockburn Global Forex Chief Market Strategist Marc Chandler told Bloomberg that “Investors are seeing the tap on monetary policy constantly opening and more financial incentives.”

“This situation combined with the introduction of vaccination will trigger stronger economic growth.”

The constant printing of money still causes criticism from both Bitcoin supporters and traditional market players. Jeremy Grantham, CEO of asset management firm GMO, warned last week that the stock markets are starting to swell and new incentives will make this worse.

Grantham suggested that the ascent could take “only a few weeks”.

“We will see money being transferred to the stock markets for a few more weeks, people will transfer their last money and then the bubble will burst. When such a rise is seen, the bubble always bursts after a few months, not a few years.

It is a matter of curiosity how this kind of collapse will affect Bitcoin. Although the reputation of the largest cryptocurrency as an uncorrelated safe-haven asset is increasing, the BTC / USD parity still continues to be affected by macro factors.

Bitcoin’s macro correlation chart. Source: Digital Assets Data

Dollar index went down

The rise of the stock markets caused the dollar to drop in the short term.

The US Dollar Index (DXY), which measures the dollar’s strength against major trading partner currencies, again tested its 90-point support after its recent rise.

The DXY, where Bitcoin is inversely correlated, is well-cornered as the coin gains over $ 33,000.

1-hour candlestick chart of the US Dollar Index (DXY). Source: TradingView

The next US treasury minister, Janet Yellen, said she wanted the dollar to neither get too strong nor lose power as it did under the Trump administration.

Analysts think the dollar will continue to depreciate in the long run due to the rising debt and the economic damage from the pandemic.

JPMorgan: “Institutional demand for Bitcoin is not enough”

JPMorgan analysts led by Nikolaos Panigirtzoglou argued in a note shared with investors on Friday that the decrease in demand for Grayscale’s Bitcoin Trust (GBTC) makes the market less likely to see an upward momentum.

Analysts summarized, “The institutional demand behind the Grayscale Bitcoin Trust is not enough for the Bitcoin price to surpass $ 40,000 in the current situation,” analysts said.

On the other hand, Grayscale continues to buy Bitcoin. The investment giant bought $ 600 million in BTC on January 15, making its largest one-day purchase ever.

Grayscale’s Bitcoin accumulations and BTC / USD chart. Source: CryptoQuant

BTC / USD parity gains strength

The BTC / USD parity, which bounced from $ 30,000 last week, started the new week with low volatility.

Investors have now turned their attention to whether the Bitcoin price can get out of the 30-40 thousand dollar corridor that it is watching after seeing $ 42,000 this month.

“Bitcoin saw a very strong backlash at $ 31,000,” analyst Joseph Young said. The decline scenario has become invalid for now. We will probably see 36 thousand dollars ” he summed up.

While such an uptrend will raise the BTC / USD pair to familiar levels, it is not outside of the price action that characterizes the last weeks.

1-hour candlestick chart (Bitstamp) of the BTC / USD pair. Source: TradingView

Ether refreshed record

The consolidation of Bitcoin after its parabolic rise has left altcoins on the scene.

Although signs of the beginning of the altcoin season were seen in early January, the fluctuation in the bitcoin price over the weekend took some gains back.

However, the biggest altcoin Ether (ETH) started the week with a 7.8% gain and a record high of $ 1,475.

ETH surpasses other altcoins that are generally stagnant with this rise.

1-day candlestick chart (Bitstamp) of ETH / USD pair and ETH / BTC pair. Source: TradingView

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