Bitcoin Volatility at Start of Week
Bitcoin prices have started the week with fresh volatility following the slide lower we saw across the Asian session overnight. BTC futures are now rebounding as European traders hit their desks this morning showing decent demand. The big focus this week is on the draft crypto bill due to be debated in US Congress later this week. The bill sets out to create a regulatory framework for stable-coins (crypto assets tied to USD). This would be a major milestone for the crypto community, bringing the asset class further into the mainstream.
BTC Safe-Haven Demand
Recently, the conversation around Bitcoin as an alternative store of capital during US economic uncertainty has started to gain more traction again. Data shows a shift away from US treasuries into BTC as concerns around US debt levels continue to dog the US Dollar. Indeed, many players are now forecasting that Bitcoin will outperform gold this year as a preferred safe-haven. Institutional demand has been soaring recently with BTC ETFs seeing record inflows, reflecting this shift in appetite. While this dynamic continues, BTC looks likely to continue higher near-term. Looking ahead this week, if the crypto debate in Congress goes well and it looks like there is strong support for the bill, this could act as a catalyst for the next push higher.
Technical Views
BTC
The rally in Bitcoin has stalled for now ahead of the $108,855 level with price since reversing back inside last week’s range. Momentum studies are softening here, suggesting risks of a deeper correction. However, focus stays on a continuation higher while price holds above the $100k mark with an eventual breakout to news highs the main objective for bulls.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.