On January 13th, the value of Bitcoin fell to approximately $90,000 due to the persistent downturn in the cryptocurrency market.
Bitcoin (BTC) has plummeted approximately 16% from its peak in December, currently nearing its lowest value since late November. Similarly, alternative cryptocurrencies such as Solana (SOL) and Cardano (ADA) have persistently dropped in value as well.
This year, it’s widely believed that the Federal Reserve may take a tougher approach (becoming more hawkish), which is contributing to the current crypto market downturn. This belief has grown stronger following the release of robust employment reports from the U.S. on Friday.
In December, the data revealed a decrease in the unemployment rate down to 4.1%, with more than 256,000 new jobs added to the economy. This resulted in falling stock prices and increased government bond returns.
One possibility for rephrasing: The initial factor that might spark a Bitcoin recovery could be the imminent U.S. consumer inflation figures due out on Wednesday. Experts predict these numbers will indicate an increase in inflation from 2.7% in November to 2.9% in December. When it comes to core inflation, which disregards fluctuating food and energy costs, they anticipate it will stay at 3.3%.
If the reported inflation figures are lower than anticipated (for example, a headline and core Consumer Price Index of 2.5% and 3.0% respectively), there’s a possibility that the price of Bitcoin and other alternative cryptocurrencies might bounce back, potentially igniting a surge in crypto markets.
A significant aspect to consider is the impending inauguration of Donald Trump, which may influence the cryptocurrency market in various ways. Throughout his campaign, Trump expressed an interest in making the United States a leading hub for cryptocurrencies, and he has begun taking steps towards achieving this goal. For instance, he appointed Paul Atkins as the next chairperson of the Securities and Exchange Commission (SEC), and is also forming a team of crypto experts to advise on related matters.
Consequently, his forthcoming inauguration and Gary Gensler’s departure might cause a buzz within the cryptocurrency sector. This unfolds as enterprises such as MicroStrategy and Semler Scientific persist in acquiring Bitcoin.
Bitcoin price technicals
A factor that might influence Bitcoin’s price is its technical arrangement. Currently, Bitcoin is maintaining a critical support point at around $90,100, a level it hasn’t dropped below since December. This indicates that sellers are reluctant to open short positions under this threshold.
As a crypto investor, I’ve noticed an upward trend in the Accumulation and Distribution Indicator, suggesting that there’s continued accumulation happening within the market. This could be a positive sign for potential price growth.
Regarding the current market situation, the $90,100 mark serves as a potential resistance in a bearish head-and-shoulders formation. However, it’s plausible that we might see Bitcoin making a recovery this week. Interestingly, Bitcoin usually experiences a rebound following a Monday decline, according to past trends.
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2025-01-13 17:12