Bitcoin lost 10% in the last first week of the year, continuing the negative trend of the last months of the end of last year.
The decline stalled just above the all-important technical level of $ 40,000, close to the September lows.
Bitcoin could fall to $ 30,000 if US inflation data on Wednesday turns out to be higher than forecasted, says Alex Kruger, founder of investment company Aike Capital, writes news.bitcointalk.
The CPI is expected to rise 7.1% year-on-year and 0.4% month-on-month. This surge shows why the Fed supports a faster normalization of its monetary policy, especially against the background of the stabilization of the labor market.
“Crypto assets are the riskiest. They have benefited from the Fed's extremely weak monetary policy, but will also suffer from tightening as investors move money into safer asset classes. As liquidity decreases, large players are selling BTC and the entire crypto market follows them, ”explained Kruger.
According to the CEO of Blockforce Capital Eric Erwin, bitcoin fell from the highs due to the withdrawal of new investors from the market, while only long-term holders remained.
Meanwhile, Mike McGlone, a Bloomberg Intelligence commodity strategist known for his bullish forecasts, believes that Bitcoin should not fall below an important support level of $ 40,000. In his opinion, the cryptocurrency will strengthen in 2022. Moreover, McGlone does not exclude reaching $ 100,000 in the medium term.
Well-known Twitter blogger Michael van de Poppe believes that Bitcoin has bottomed out. According to his scenario, BTC will rise to $ 46,000, then retest the current minimum and, finally, resume growth.
In contrast, Miller Tabak's Matt Maley is skeptical. In his opinion, the attractiveness of risky assets, including BTC, will weaken, as the US Federal Reserve will raise interest rates this year.