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- Bitcoin will end the year on the lower ends of the price spectrum, however few analysts believe it could start its year by an immersive rally.
- Historically, Bitcoin has risen somewhere between 7%-30% in the first week of January since 2018.
- The next FOMC meeting & hotter than expected inflation report could prove to be the conjecture points for the token.
While it has been a phenomenal year in regards to adoption of cryptocurrencies, most are beginning to learn about them while considering them as assets & potential store of value. However, Bitcoin recently witnessed its lowest month since May after discovering new peaks of all time highs back in November, since then BTC has crashed by more than 30%, trading at February levels between $45K-$50K.
Such a trend might soon end as various analysts have pointed out the potential for the token going green in the first week of January as what they call a “First week of the year effect”.
The Famous Alex Kruger, an economist & a trader in the financial markets with more than 100K followers on twitter pointed out the much desired possibility of the greens.
Kurger, in a tweet pointed out that from 2018, the price of Bitcoin has always surged in the first week of Jan while rallying between 7%-36%. Last year Bitcoin saw its bullish rally, where it went trading from $28,654 to $41,441. Kruger also believes that the last 2 years are completely different from the prior ones as the markets have evolved & gained mainstream adaptability.
Kurger’s optimistic views come in accordance with the CEO of Real Vision, Raoul Paul where he believed that the sell-off of Bitcoin was over & would see a strong start in January, as much of the institutional capital gets reinvested into the crypto markets.
David Lifchitz, The chief investment officer at ExoAlpha interprets that more institutions were selling the token even with less than 24H remaining for the year to end, in order to fix the tax losses, consequently believing a strong correlation with the January rebound.
However many analysts including kruger also believe that the next Federal Open Market Committee (FOMC) & hotter than Consumer Price Index (CPI) rate could act as a conjecture point for the token, where people who consider Bitcoin as digital gold could be seen investing more or reinvesting into the token as a hedge against inflation.
However things could also turn out the other way as investors could panic more looking at the volatility of the markets while waiting to go for safer assets like gold, hence it is important to know the tokenonomics of the cryptos while also reading the veins of the market.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
