Bitcoin Stuck on Macro Fear, But Explosive Volatility Expected

Bitcoin (BTC) briefly rose above $27,000 on Saturday night, but was already rejected around $27,200 and so the peaks are getting slightly lower. Bitcoin then fell all the way to $26,500, but has since recovered slightly and, at the time of writing, stands at $26,870 on Binance and $24,870 on Bitvavo. This puts the bitcoin price down 0.6% today. The total market capitalization is $521 billion and the dominance is 46.4%. The Fear & Greed Index comes out at 49 (Neutral).

Macro data this week

Last week was somewhat quiet in terms of macroeconomic data, but this week we have another full week ahead of us with data such as the PCE, unemployment claims and FOMC minutes. From now on you can find a more extensive weekly overview of this macro data here.

US debt ceiling

Discussions about the US debt ceiling are also gripping the markets. Later today, President Joe Biden and Republican Speaker of the House of Representatives Kevin McCarthy will meet to discuss the debt ceiling.

Recession worries and bear market

In addition, there is still a lot of uncertainty about an upcoming recession and whether this will be accompanied by a ‘soft’ or ‘hard landing.’ A few months ago, the market started talking about a new bull market phase, but more and more people now seem convinced that it is rather a recovery phase of the bear market.

Volatility and liquidity

Bitcoin has been stuck around that $27,000 since mid-March, but is slowly starting to move slightly lower. Analytics company Glassnode reports that bitcoin is now consolidating in its tightest range in the past three years. That means volatility may be just around the corner.

Meanwhile, the Federal Reserve’s liquidity is on the rise, which may be good news for bitcoin, as the cryptocurrency has a high correlation to this liquidity index. However, that may take some time before this liquidity finds its way into bitcoin and follows its course.

Bullish: Investors are holding tight to their BTC

Nevertheless, long-term investors provide a solid foundation. The BTC supply that has not moved for at least six months has a new one all time high reached, reports analyst On-Chain College. 15.2 million coins, or 78% of the circulating supply, have been idle for more than six months.

This also applies to the supply that has not moved for at least a year. This stock has reached an all-time high of 68%, reports analyst James V. Straten. Both numbers are a strong sign of confidence among bitcoin investors.

Bitcoin pizza day today

Finally, today is ‘Bitcoin Pizza Day.’ On this day 13 years ago, Laszlo Hanyecz bought two pizzas for 10,000 BTC. Bitcoin is said to be worth as much as $268 million today.

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