Bitcoin (BTC) starts a new week and a new quarter at just over $46,000. Factors considered important for Bitcoin and altcoins are being studied in relation to the price performance next week. Here are the details…
Inflation meets money printing
As we have previously mentioned as Kriptokoin.com, there has been a lot of talk about the end of the post-COVID “easy money” period and its impact on risky assets such as Bitcoin. But so far, while there has been little sign of a fundamental shift underway, the opposite seems to be true in Asia this week. As market commentator Holger Zschaepitz underlined, Japan’s central bank, the Bank of Japan (BoJ), added to its balance sheet but printed more liquidity.
Meanwhile, some argue that central banks will soon have no choice but to restart their liquidity injections. “There is no government that resists the temptation to print money to pay its bills and please its citizens,” said Arthur Hayes, former CEO of BitMEX, adding:
Remember: it’s not gold or Bitcoin that goes up, it’s the fiat it’s priced at. decrease in the value of the currency.
US Federal Reserve (FED) officials will speak
Meanwhile, some Fed officials will make speeches throughout the week. This week’s speakers will include: Lael Brainard, Nael Kashkari, Patrick Harker and James Bullard.
FOMC minutes to be published
The Fed, which increased interest rates by 25 basis points last month, will release FOMC minutes on Wednesday. These minutes will include comments on issues such as a 50 basis point rate hike against inflation.
Talk between Russia and Ukraine
The developments between Russia and Ukraine have been affecting the markets for more than a month. With the outbreak of the war, precious metals such as gold gained momentum while BTC gained decline. Although their effects have waned as rumors of a ceasefire surfaced since mid-March, investors may be in the spotlight as Russia and Ukraine are expected to meet this week.
Bulls target $50,000 for Bitcoin
As Monday begins, the main talking point among Bitcoin traders and analysts has been the lack of volatility. The classic but short-lived excitement about the weekly close has subsided within hours and the bears are still unable to take the annual open as support. However, BTC/USD is in exactly the same place as three months ago, but short-term price signals are already seeing some calls to continue. Among them is popular analyst TechDev, who highlighted Bitcoin’s first “volatility squeeze” since January on the 12-hour chart.
TechDev, BTC/USD in the middle of the channel with an upward slope The Bollinger Bands, which saw it float around, used indicators including a measure of volatility. According to the expert, the possibilities are already open for a $50,000 attack, which will be Bitcoin’s first this year. In the meantime, it’s worth noting that April has historically been a “good” month for Bitcoin.
Buyers removed their coins from exchanges in March
It’s no secret that many Bitcoins are leaving the exchanges this year, but the latest data shows how the supply shortage is. According to on-chain analytics firm Glassnode, the last month has seen stock market breakouts unlike any other – exchanges have dropped the equivalent of almost 100,000 BTC. Historically, there have been only two instances when Bitcoin’s outflows on exchanges exceeded the 100,000 BTC level and smashed March’s highs. “Total stock market outflows of this magnitude have only been seen a handful of times throughout history, and most of them occurred after the March 2020 liquidity crisis,” Glassnode said, along with an annotated chart.
In 2020, BTC/USD recovered after falling 60 percent in days, while price performance remained unchanged until the fourth quarter of 2020. Meanwhile, other analytics platform CryptoQuant, which monitors the balances of 21 major exchanges, shows that total BTC stocks are currently at their lowest level since August 1, 2018: 2,303 million BTC.
Altcoin season coming?
An unusual event has occurred when it comes to Bitcoin’s relationship to altcoins – the combined open interest and volume in altcoin derivatives markets exceeded that of Bitcoin for the first time in more than a year. The move was spotted by crypto analytics platform Coinalyze, clearly suggesting that the very legendary “altseason” could be here now. Founder Gabriel Dodan said that “money is now flowing into altcoins, so alt season may come.”
Bitcoin hash rate hits all-time high
In record difficulty for the Bitcoin network, the hash rate has reached all-time highs. According to the MiningPoolStats data source, the hash rate is currently 223 exahash per second (EH/s). While it’s only an estimate of the processing power allocated by miners, the hash rate has never been higher.
On Wednesday, the Bitcoin 2022 event will begin
Promoted as the largest Bitcoin-focused conference, Bitcoin 2022 will run from April 6-9, 2022 in Miami, Florida will take place in. The speeches at this conference, which will be attended by important names, will be followed with interest by investors.
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