Last week, BTC crossed a mark of $21,490, and altcoins also saw a great rally. US indices like NASDAQ and S&P 500 did not see any significant movement and ended the week with a slight dip. The weak performance can be attributed to the troubled earnings and shrinking margin that will arise this year as the economy heads into a tough spot. While the PPI print further intensified the upside across BTC and altcoins, it retraced around the US market opening time. The change in commentary from Federal Reserve holds immense value at this point and for the rest of the year.
The price of the BTC is currently hovering between the levels of $20,700 and $22,400. In the days ahead, there is a chance of a retracement to the $20,000 price level. The retracement possibility is only invalidated if BTC prices close above $22,500. In that scenario, a rally to the upside should be expected to reach the $24,000 mark. Any significant boost or positive development from the institutional side or Federal Reserve can continue the move to $24,500+.
Fundamental Updates
Last week, the CPI print caused the market to see a good rally to the upside, further intensified by a more favorable PPI release. While everyone now hopes for lower rate hikes coming in 1st week of Feb, the continued hawkishness from Fed is still making investors unsure of the market conditions ahead. Another catalyst to the downside that may have a slight effect on the downside can be the bankruptcy filing by Genesis Trading.
While the contagion risk from DCG’s dissolution or shutdown can be immense, it seems the management is trying every trick to negate that scenario. Amidst all this, the continued layoffs and restructuring create an environment of austerity across the ecosystem. All this makes the investment opportunities clearer and more apt for investors across private and public markets (crypto and otherwise).
Next week on Friday, the US Advance GDP QoQ data is scheduled to be released. This will create an environment of decent volatility across the board as GDP data is one of the crucial indicators to gauge the state of the economy. A positive print on this will be extremely bullish not just in the short term but for the quarter too.
Bitcoin returns were 8.51% for this week. The Alpha Blue Chip Focused Strategy returns were 21.10% during the same period (12 JAN – 19 JAN). The Top Cap Digital Assets Strategy and Arbitrage and Balanced Opportunities Strategy returns were 13.14% and 1.51%, respectively.
