The Bitcoin (BTC) is on track to close its tenth week in a row below $43,000a price that could only be exceeded on a few occasions since the beginning of 2022 and, like most shares and paper in the equity segment, affected by the weak economic rebound after the coronavirus and the conflict between Russia and Ukraine .
In fact, the main cryptocurrency in the world has not had a weekly close above US$43,000 since December 27, 2021, although it seems to have found a trading floor in the US$35,000 area, which it only managed to temporarily cross in a few days in January and February, before its price rose again, driven by a demand for crypto assets that, although it is far from its peak of euphoria at the end of 2021, is still active.
The announcement of the Federal Reserve of the United States of a tightening of its monetary policy to reduce inflation – which reached the highest levels of the last 40 years– and the rise in the prices of energy and agricultural commodities that triggered the war between Russia and Ukraine is affecting economic activity, international trade and, consequently, the price of the main crypto assets.
In this sense, market analysts affirmed that BTC is unlikely to break above $46,000 anytime soonunless there is a macroeconomic “change of environment” such as a change in risk appetite.
BTC is unlikely to break above $46,000 anytime soon.
“The long positions in Bitcoin don’t have enough momentum to push prices above that level,” Wilfred Daye, head of Securitize Capital, told Bloomberg, stating that “for Bitcoin to break above that level, you need ingredients. as a technological rebound and an appetite for macroeconomic risk”.
Bitcoin is trading today at US$41,300 per unit -according to the Coinmarketcap portal-, 40% below its maximum of US$70,000 in November, and is mired in its tightest trading range since October 2020, which some attribute because long-term holders have stepped in to buy when token prices drop while short-term investors pare down more substantial gains.
“Bitcoin is consolidating below $41,000 as the percentage of long-term holders in the market continues to rise,” said Marcus Sotirou, an analyst at UK-based digital asset brokerage GlobalBlock, who argued that by 2022 “I can’t expect a sharp rebound in prices due to macroeconomic conditions.
Billionaire crypto investor Michael Novogratz said Tuesday on Bloomberg TV that BTC is likely to remain in a range between $30,000 and $50,000 as US interest rates rise.
“Previous performance data suggests the token is unlikely to sustain a rally as the Fed tightens monetary policy over the year,” Novogratz noted.
