Investors Await for the Right Moment to Jump in
Bitcoin Holds Around $21k, but Market Sees Loss in Buying Force. Analyst Believes It May Be Similar to 2019 Moment.
January 17th, 2023: Bitcoin is continuing its uptrend from last week, holding around the $21k mark. However, some crypto market participants are seeing a cooling of the buying force. In line with this, institutional investors still don't seem confident enough to make their bets in crypto.
We believe that the start of a new bull market will depend on the influx of new capital, which is linked to growing institutional demand. Institututionals are likely monitoring the US monetary policy, waiting for the Fed to give more consistent hints that the rate hike cycle is near its end. On the more optimistic side, Bloomberg commodities analyst Mike McGlone believes that Bitcoin is forming a bottom similar to the one that preceded the strongest rally in 2019. However, he notes that back then, monetary policy was still expansive, as opposed to the current global monetary tightening.
This analysis corroborates our view that we will go through a period of accumulation with price highs and lows in 2023, with a bull market only starting at the end of the year or beginning of the next one, after the US monetary policy has become expansive again. Lastly, talking about market cycles, a popular crypto analyst tweeted that he is seeing Bitcoin leaving the “disbelief” phase of the market.
Top News:
Bitcoin is staying above $21k, but buying pressure may be cooling off
Institutional investors still don't seem to be excited about Bitcoin's rally
A Bloomberg commodities analyst sees Bitcoin forming a bottom
Bitcoin may be coming out of the "disbelief" phase of market highs and lows.
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