Reading time: ~ 1 m
2022 started unsuccessfully for bitcoin, the coin lost more than 15% of its value in the first week of January. The previous evening, it managed to rise in price to $ 42,727, however, against the background of weak volatility, the risks of a new rollback remain.
Aggressive rhetoric from the US Federal Reserve weakens investor interest in risky assets, said trader Alex Kruger. The bulls have very few chances at this tap and most likely the market will remain bearish. At the very least, the negative trend will dominate until the end of the first quarter, Kruger said.
In his opinion, not only the Fed’s readiness to raise the rate already in March provoked an outflow of capital from bitcoin. The key factor was the surprise effect. Investors did not expect that the regulator would so quickly revise its position and put on a tightening of monetary policy as part of the fight against inflation.
In the second quarter, bitcoin will be able to rise in price to $ 45,000, but this will exhaust the potential of the cryptocurrency, predicts Alex Kruger. According to the trader, a new phase of BTC weakening will become a dangerous scenario, since the next support zone is expected only around $ 30,000.
According to Santiment, the number of large transactions in the bitcoin network has sharply decreased by at least $ 100,000. This trend not only speaks of the unwillingness of whales to pump up cryptocurrency, but can also signal a long stage of stagnation.
#prospects #Bitcoin #quarter