On January 24, Björner was still in complete control of the cryptocurrency market and, to the shock of many, managed to push the price of Bitcoin (BTC) to a multi-month low of $32,967 during the early hours. This lower grip filled the remaining CME futures gap from July 2021.
Data from Cointelegraph Markets Pro and TradingView shows that the $36,000 level was breached in the early hours of trading on Monday, causing sales to dip below $33,000 before buyers arrived to bring the price back above $35,500.
BTC/USDT 1-day chart. Source: Trading View
Here’s what some analysts are saying about the macro factors affecting global financial markets and what you should expect in the coming months.
“Rising interest rates does not kill risky assets.”
For weeks, US financial markets have been mostly buzzing about the prospect of four rate hikes by the Federal Reserve over the course of 2022, which many have argued would end the current beef market.
But according to Tascha, a financial analyst and Twitter user, this is a common misconception because “high interest rates do not kill risky assets.”
“The opposite of quantitative easing does. Look at what happened to stocks in 2015 and 2018 when the Fed turned off the tap.”
More information about Tasha’s tweet was provided in the following reply from Twitter user under the pseudonym RK Maruvada.
Isn’t it time to think about the day?
Giving some hope to cryptocurrency, technical analyst and founder of Bollinger Bands, John Bollinger, tweeted the following: “Time to think about Crypto Day.”
Although a well-known analyst believes that the market may be in general bottom territory, caution is still required, and a bounce followed by a retest is necessary before entering a long BTC position.
Related: Bitcoin Enters Value Zone As BTC Floor Price Calculation Turns Green Again
Bitcoin Open Long ‘Looks Attractive Here’
The latest excerpt from the analysis was provided by macro strategist and co-founder of Delphi Digital, Kevin Kelly, who noted, “The big question now is where will the next wave of demand come from and what level do we need to reach to start such offerings?”
BTC/USD 1 day chart. Source: Trading View
According to Kelly, “an average high of $30,000 per bitcoin is a safe bet,” especially due to the belief among many that bitcoin could “reach $70,000.”
That means a 75% gain over current levels, which Kelly says “big capital allocators salivate at,” even if it takes a year or more to achieve those returns.
“That is why we are convinced that Bitcoin looks attractive here for those with a fairly long time horizon, especially when compared to traditional options for piling your capital.”
This feeling that BTC has been in good shape for a long time was repeated in the following tweet by cryptocurrency analyst and Twitter user Will Clemente.
The total market capitalization of the cryptocurrency is now $1.594 trillion and the Bitcoin dominance rate is 41.9%.