This week’s Bitcoin news includes the lowest weekly finish since December 2020 and five topics to keep an eye on
Bitcoin has lost 12% in the last 24 hours as a new cryptocurrency crash mixes with economic factors to bring only agony to hodlers.
Bitcoin (BTC) starts the current week with an entirely different vibe than the previous one, with BTC/USD closing at its cheapest weekly finish since December 2020.
The biggest crypto is currently coming closer to breaking its ten-month low points from May after a night of falls into June 13.
Few are surprised by the decline – last week’s surprise inflationary statistics from the United States triggered a domino effect throughout asset prices, and poor weekend availability worsened the ramifications for crypto assets.
The macroeconomic pain persists this week, with the Federal Reserve set to release data on rate rises and the economy overall for the first time.
The “collapse” of Celsius looms, sending Bitcoin plummeting
It’s taken a very long time, but Bitcoin has officially broken out of the narrow band it’s been stuck in since last month’s ten-month downtrend.
After rebounding off $23,800, BTC/USD spent weeks around the $30,000 zone, unable to make a meaningful breakthrough up or down. While this is not good for investors, the path appears to be obvious.
On the heels of a 40-year high in inflation, the Fed is expected to make a policy change
Given the existing fragile macro-dynamics, a black swan occurrence akin to Terra is perhaps the final thing Bitcoin deserves.
However, new volatility is possible this week as the Federal Open Markets Committee (FOMC) braces for its June plenary session, which begins on June 15.
The US dollar is doing nothing more than attempting to break beyond 20-year highs
Where management provided has suffered in recent years, the US dollar has reaped the benefits.
That trend appears to be set to remain since macroeconomic factors put pressure on almost every major world economy, and management provides offers no viable safe harbour.
Following a slight retracement, the US dollar index (DXY) is currently solidly back on the horse and eyeing the May highs of 105. These represent the highest levels of USD power since 2002 and are only 0.5 points apart at the time of this writing.
The “Misery Index” emphasizes economic jitters
There will be no shocks this week regarding the bitcoin market attitude, with the macro attitude deteriorating as well.
The Crypto Fear & Greed Index, which considers a variety of criteria to assess overall market circumstances, is on the verge of dropping into the single digits.
“A once-in-a-lifetime chance?”
Given the current state, it may appear that there are no more Bitcoin bulls to provide a silver lining to the numerous storms in the sky.
Zooming out, meanwhile, many people see the market dynamics as a great investment prospect if properly utilized.
Filbfilb, the co-founder of trading software Decentrader, is one of them, calling Bitcoin a “chance of a generation” over the weekend.
“Just to be explicit, notwithstanding short/medium term concerns that sadly exist from across the board,” he wrote on Twitter. “If you can endure and execute your moves well without trying to blow up or sacrificing too much, so you have no wealth, this is IMO the chance of a lifetime.”
