Bitcoin (CRYPTO:BTC) is facing several key macroeconomic data releases this week, causing increased volatility in the markets.
What happened: The Kobeissi Letter noted that this week would be full of key economic events, including the December producer price inflation figures published on Tuesday, those of consumer price inflation on Wednesday, retail sales this Thursday, and the Philadelphia Fed manufacturing index, also Thursday.
Additionally, seven Fed spokespeople are scheduled, making this a crucial week for inflation data and Federal Reserve insights.
Cryptocurrency trader Michael van de Poppe speculated on the possibility of a classic “sell the rumor, buy the news” event and wondered whether the catalyst could be the PPI, CPI, or even the inauguration of the president on January 20.
He noted a significant pullback in the altcoin market to start the year.
Renowned analyst Alex Krüger observed that the stock market often dips overnight from Sunday to Monday, and hits its local lows when the US stock market opens, especially after a weak previous week.
With CPI data and Trump’s inauguration adding uncertainty, he expects increased volatility.
Also read: EXCLUSIVE: Answering key questions about the future of bitcoin 10 days before the inauguration
The sequelKevin, a leading cryptocurrency analyst, noted that the macro environment, characterized by rising DXY and 10-year Treasury yields, supports Bitcoin’s dominance as investors look for assets to lower perceived risk.
This dynamic could continue to hamper altcoins, delaying any hope of seeing a
From a technical perspective, Bitcoin dominance forms an inverse head and shoulders pattern on the 4-hour chart, aiming for 59.5% dominance.
The altcoin cycle poses significant risks due to the lack of major monetary policy changes, which further deviates from historical patterns.
Chart analyst Ali Martinez pointed to a sharp decline in capital flows into the cryptocurrency market – a 56.7% drop last month, from $134 billion to $58 billion.
This sharp decline in investment activity could serve as a warning to traders.
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