Bitcoin’s price is still negative as we enter 2023. However, there are a few developments to consider in Bitcoin this week. In the first week of January, US Consumer Price Index (CPI) data are expected. That’s why the markets are pretty quiet. Meanwhile, tomorrow, the minutes of the US Federal Reserve (FED) meeting will be released. Here are the details…
Fed minutes to be released tomorrow
In the minutes of the US Federal Reserve’s (Fed) meeting, which will be announced tomorrow at 22.00 Turkish time, possible clues regarding the bank’s monetary policy in the next period are sought. In addition, inflation and labor market data affect the agenda. These data are expected to increase volatility in asset prices throughout the week. On the other hand, as 2023 begins, Bitcoin’s core community continues as normal. Miners continue to feel pressure on BTC price performance as the difficulty adjustment on January 3 will wipe out profits made two weeks ago.
According to BTC.com, mining difficulty is expected to decrease by 3.52 percent this week after increasing 3.27 percent on December 19. This means that all-time highs will not be reached. However, statistics collected in the second half of December painted a bleak picture for the typical network member. Hash rate (an indicator of the total processing power allocated to mining) has slumped to its lowest levels in the year.
Bitcoin lacks volatility
There has been no volatility in Bitcoin for weeks. Therefore, the owners have no reason to sell it. The most recent chain data seems to support this. It shows that the BTC supply is idle as speculators have stopped buying Bitcoin. Data from Glassnode, an on-chain analytics company, reveals that the supply of its wallet, which has been stagnant for the past five to seven years, hit an all-time high in January of this year.
Indicating the lack of impulsive speculative trading, the volume of short-term coins in circulation declines as the supply ages. According to Glassnode, Bitcoin supply is at a five-year low compared to when it was last active three to six months ago. Three to five years of procurement activity fell to an unprecedented level in a year. At the time of this writing, one Bitcoin has a value of $16,743 and a 24-hour trading volume of $11.3 billion.
Analyst expects 110 percent rise for Bitcoin
On the other hand, some analysts’ expectations remain positive for Bitcoin. Crypto analyst Michaël van de Poppe, for example, is laying out his predictions for how Bitcoin (BTC) might perform this year. Van de Poppe said that Bitcoin could be poised for a massive surge in the coming months. He pointed to the possibility of a potential temporary bottom in horizontal markets. It pointed to $30-35 thousand in BTC with the stagnation of the rises and the decrease in inflation. Also, the analyst said, “The huge bull cycle of 2024-2025, Bitcoin is between $250,000-300,000.”
Currently, Bitcoin is changing hands at $16,665, according to cryptokoin.com data. This shows that if BTC reaches the analyst’s prediction, it can gain over 110 percent. In the short term, Van de Poppe says Bitcoin looks ready for a quick rally. “I would be chasing the $16,600 area if you are not in a particular position.” says. In the short term, the analyst’s targets are around $17,000-17,100.