Bitcoin (BTC) starts a new week and approaches record price levels – can it keep profits longer?
After a turbulent weekend, the largest cryptocurrency shows mixed results before Wall Street opens on Monday.
Cointelegraph examines five factors that may affect the direction of BTC / USD in the next few days.
China’s growth grips with underdeveloped stocks
At the beginning of the week, the picture of macroeconomic markets is ambiguous, and there is no clear description of the effect of any impact on risky assets.
While bond yields are a concern for US futures, it can hardly be better worldwide in Asia, as China reports almost unimaginable gains in the first months of 2021.
As noted by Bloomberg, the data looks more structured thanks to a comparison with the same period last year, when China at the time was isolated due to coronavirus. Both industrial production and retail trade exceeded the target by 32%, up 35% and 33.8%, respectively.
However, liquidity problems associated with the Chinese central bank, the People’s Bank of China (PBOC), dampened sentiment.
“Since the beginning of this year, the People’s Bank of China has spent more than 600 billion yuan in market funds to reduce asset bubbles,” Cheng Choping, an economist at the Australian and New Zealand banking group, told Bloomberg.
The expected interest rate hike from the US Federal Reserve – which is allegedly fully guaranteed by some after printing money this year and last – is far from clear, according to the bank.
“Economists expect the Fed to increase 50 basis points by 2023. But they also expect a special forecast from the US bank CenBank, which will be released in the next session on Wednesday, will show that the Fed’s expected average interest rates will remain stable near zero. This year, market commentator Holger Zshaepitz summed up the results on Monday.
The United States sends honorary checks
Meanwhile, only one general question for retail investors in the United States dominates in the short term: the test of incentives.
With the approval of lawmakers, $ 1,400 in direct payments have already been sent as part of President Joe Biden’s $ 1.9 trillion stimulus plan, now called the “Bitcoin Announcement.”
The move increases a huge mountain of US debt, which had already exceeded $ 28 trillion before it was approved, and signals a definitive return to inflation, although the Fed itself insists that the risk of such a scenario remains low.
At the moment, however, bitcoin advocates are only concerned about the number of recent unexpected advances that will appear in the cryptocurrency ecosystem.
“Millions of governments are happy to pass the $ 1.9 trillion growth stimulus bill.” Robert Kiyosaki, author of the acclaimed book Rich Dad Burr Dad, responded this weekend.
The problem is that free money makes the poor and middle class even poorer. Buy more gold, silver and bitcoin. ”
The money has actually been in US wallets since March 14, but recent reports suggest that many will have to wait at least until Wednesday to distribute it.
Last year, when Bitcoin was only a fraction of the current price and the advertising itself was much lower, there is still a large increase in purchases on Coinbase, which is exactly equal to the amount of the first incentive test. This time, conditions are much more favorable for a sudden investment shock from retail.
In contrast to 2020, analyst Lyn Olden notes that the timing of the third payment round can make recipients feel more even and allow them to choose alternative investments.
“The third round of incentive testing will begin as revenue growth from the second round continues to push personal income above the trend,” Alden tweeted Saturday.
“On the other hand, the second round of inspections was not completed until the first round of inspections and unemployment benefits was completed.”
Whale press takes its toll on stock exchanges
Inside Bitcoin, Monday proved to be a tough day for traders.
After reaching a full-time high of $ 61,700 over the weekend, Bitcoin failed to maintain its bullish momentum, falling below $ 60,000 during trading.
At the time of writing, losses are still pending, with BTC / USD approaching $ 58,000 after falling below a full-time high of $ 58,300 last month.
A look at the data from the Binance exchange order book shows that support has leveled off to $ 57,000, but if this outbreak occurs, there will be levels close to $ 50,000 on the map.