5 factors that are crucial for the bitcoin price this week

Bitcoin (BTC) made its fastest plunge in four months on Thursday night, dropping more than 5% in less than 30 minutes. Since then, the price has hovered around $22,400 and saw remarkably little movement over the weekend. Bitcoin briefly fluctuated between $22,200 and $22,600 on Saturday, but is back at $22,408 on Binance and $21,050 on Bitvavo at the time of writing.

This means that the bitcoin price is up 0.1% today. Trading volume increased by 7% in the last 24 hours. The total market capitalization is $433 billion and the dominance is 42.4%. The Fear & Greed Index comes out at 48 (Neutral).

What does this week promise for bitcoin?

The bitcoin price is currently in the “chop zone” according to analyst Skew. As he points out below, the next few days may be decisive for which direction bitcoin takes off. Any weakness could lead to a retest of the $19,000.

Will Silvergate collapse this week?

Last week’s nosedive was likely caused by the problems at Silvergate. However, we have not yet seen the end of this story and there is speculation that the crypto bank will collapse this week.

New macro data this week

It is also another full week in terms of macroeconomic developments. For example, next Tuesday and Wednesday we have new speeches from Federal Reserve Chairman Jerome Powell. US unemployment figures will also follow on Thursday (jobless claims) and Friday (unemployment rate).

The Chinese consumer price index (CPI) will also follow this week, where the economic situation is currently slightly more hopeful. The volatility in the market, with all these factors combined, could therefore increase rapidly again this week.

Bitcoin Mining Difficulty

The bitcoin mining difficulty will also be adjusted in about four days. Currently, only an increase of about 1% is expected, but that is still a new record. The competition and therefore the hash rate continue to increase, and with that the pressure on miners is likely to increase slightly.

Stablecoin inflow to exchanges

Cryptoquant analyst Jaybot reports seeing a massive influx of stablecoins to exchanges. That may be one bullish signal for the BTC price, as investors normally do this to exchange their stablecoins for speculative crypto again. This means that their purchasing power increases.

Our analysts use Bybit

The crypto market is volatile and constantly changing. Often after every increase, a decrease follows. Our analysts therefore use Bybit to also benefit from falling prices. By using Bybit you have the option to trade in derivatives and place so-called short orders when you expect a price to fall. Very handy! You can easily create an account via this link and registers Bybit that you are from Crypto Insiders. With this you support our platform and you are eligible for great prizes and offers.

Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences.

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