Executive order for US crypto looms — 4 things to evaluate in BTC

At the beginning of the year, and to the surprise of many, Bitcoin took a downward trend and eventually dumped to the $30,000 price range. However, since then, the digital coin has picked up and made an upward recovery. Visit at: https://bitcoin-loophole.live/

Now, to have an idea of where the digital coin might be heading, there’s a need to study the market events of January 2022. 

In mid-January, Bitcoin dipped to a price range of $37,000 which seemed not good enough to fulfill demands from analysts as well as the familiar rangebound pattern of Bitcoin. 

Following a lack of serious recovery of the spot market, many at that time believe that an external influence may end up triggering a shakeup. At the same time, many were anticipating the United States executive order concerning regulations on cryptocurrency even when the exact timing remains unknown. 

To this end, a lot of analysts were anticipating the United States’ Federal Reserve’s latest publication to find any cues concerning the inflation interest rate. This is because such cues can have a significant impact on the conventional markets which correlates closely to the crypto market. 

Certainly, January 2022 can be characterized as a frustrating month for crypto investors. As a result, there’s the need to closely analyze the dynamics of the crypto market to have an idea of the direction it will most likely follow. 

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To this end, here are four things worth evaluating as Bitcoin figures out its move through the year. 

Bears “hammer” down on Bitcoin weekly close 

With Bitcoin seeing a slight increase toward the weekly close in January, it was a temporary reason for the bulls to celebrate. However, a rapid rejection was rejected with BTC dipping to the $36,000 range. 

As remarked by the podcast host, analyst, and trader Scott Melker, high volume pushed the move which helped to underscore the uncertain nature of the weekend piece action. 

According to various other sources, Melkerbakdi affirmed that the $39,600 price range must be reclaimed by Bitcoin before a bullish bias prevails. 

Is S&P 500 ready to end its worst spell since March 2020?

Even though Bitcoin’s monthly close is yet to be linked to prompt any shocks, the stock markets may help offer some late mitigation. 

In recent months, Bitcoin has shown a positive increase in correlation with the S&P 500. This implies that the digital currency is heading for its worst monthly performance since March 2020. 

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The S&P dipped by 7% in January which translated to an uneasy start for Bitcoin this year. Some January, Fed policy began to gnaw on investors’ enthusiasm, followed by a remarkable liquidity offering at the beginning of the pandemic. 

With the Fed unwilling to make public the calendar for the hike in interest rate, which will stop the easy money faucet, another major issue for Bitcoinera seems near. 

Old hands age well

A more soothing trend for traders in the market is that Bitcoin holders continue to cling to their crypto assets behind the scenes. 

According to data from Glassnode, an on-chain analysis firm, the last week in January verifies that the quantity of digital coins that were last transferred in the last seven years hit an all-time high. The combined coins are now a total of 726,727BTC. 

Similarly, January, as a matter of fact, witnessed an overall decline in Bitcoin exchange reserves even with the price decrease. From the data made available by Glassnode, top exchanges are now down by 243 million dollars in the last week of January. 

In the past, Cointelegraph has also once reported a continuous decrease of BTC holdings of various exchanges. Another data made available by CryptoQuant, which monitors about 21 top crypto exchanges also confirmed that balanced are at their worst   

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GBTC leaps to record 30% discount

No doubt things are not going smoothly for the Grayscale Bitcoin Trust (GBTC).

Even though data suggest that the comeback of institutional interest in Bitcoin is high, the demand for the industry’s BTC investment continues to decline. 

Based on data from Coinglass, the on-chain analytics company, GBTC throughout the third week in January, trading at its largest discount compared to BTC’s spot price. Ideally, this discount to net asset value (NAV) previously used to be a premium that investors paid in exchange for exposure. However, the tables have long turned.