In recent weeks, Fed decisions and the strength of macroeconomic data have been effective in pricing cryptocurrency markets, especially Bitcoin.
After a few weeks under pressure, risk markets started this week on a calmer note after pricing in the latest data.
Data due to be released this week include US Consumer Confidence tomorrow and the Purchasing Managers’ Index on Wednesday and Friday.
This data may have an indirect effect on the price of Bitcoin. US consumer confidence, to be announced tomorrow, came in at 107.1, below January expectations of 109.
Analysts expect a slight increase, reaching 108.5 in February.
An upward trend in the dollar index is likely in the event of stronger consumer confidence sentiment, although this is believed to have a negative impact on the Bitcoin market.
Among other important data to be released this week, the US Manufacturing Purchasing Managers’ Index came in at 47.4 in January, below the forecast of 48.
When the data was released last month, there was an increase in the price of Bitcoin due to the drop in the DXY.
After this short-term effect, the price of Bitcoin fell while the dollar index strengthened.
The fact that the PMI index, which is among the data closely monitored by the Fed, is higher than expected may be interpreted as corroborating the view that the Fed is succeeding in its policy and, if so, may create additional information pressure on the price of.
On the other hand, although the Non-Manufacturing Sector PMI is another important data point monitored by the Fed, positive data above expectations may create negative effects for BTC in the short term, as they have a positive effect on the DXY.
Gensler wants altcoins under SEC jurisdiction, excluding Bitcoin
SEC Chairman Gary Gensler said in a recent interview that the SEC has all the legal resources needed to oversee the crypto industry.
Reiterating his position on Bitcoin, Gensler said there may be a group of startups related to all crypto assets except Bitcoin, and that there are foundations using these assets. In light of this, he stated that investors expect to profit from cryptocurrencies by following these groups.
Although the SEC’s position that views Bitcoin as a commodity does not change, it continues to increase its pressure on the altcoin market, which may affect Bitcoin’s dominance rate in the coming days.
1,000 BTC moved for the first time in 4 years
According to Blockchain data, 1,000 BTC acquired about 4 years ago was transferred. The assets, which have appreciated significantly by 575% since the purchase date, are considered large enough to disrupt the market.
CryptoQuant author JA Maartun pointed out that the 1,000 BTC transferred were received on February 23, 2019, when the BTC price was US$ 3,468. In other words, Bitcoins bought for US$ 3.4 million are currently worth about US$ 23.4 million. In addition, it is mentioned that there is no definitive proof that the current transfer will be carried out at this time, since the current transfer is being made to another account of the same person or institution.
The number of Bitcoin whales is decreasing
The price of Bitcoin is still far from its peak, despite the upward movement in January. Bitcoin’s price performance remains weak, as large investors still have not moved enough.
According to data provided by Glassnode, the number of Bitcoin whales fell to the lowest level in 3 years. Currently, the number of holdings with 1,000 BTC or more in the wallet is recorded at 1,663. This number was last seen in February 2020, when Bitcoin was below US$ 10,000. The peak was observed in February 2021, with 2,161 wallets containing more than 1,000 BTC.
Reference source: investing.com
