Bitcoin ( BTC ) has kicked off 2023 with a blast attaining several key support levels that investors will be hoping can build the base for the maiden cryptocurrency to rally further. The bullish momentum has come with investors capitalizing on the positive macroeconomic news to pump more capital into the asset.
In this line, Bitcoin has witnessed an inflow of over $73 billion within seven days amid sustained buying pressure. By the time of publishing on January 15, Bitcoin controlled a market cap of $399.1 billion, representing an increase of about 22% from $326.1 billion registered on January 8.
Indeed, the value of Bitcoin is benefiting from the increased capital inflow, with the asset trading at $20.886, having rallied over 22% in seven days. On the weekly chart, BTC peaked above $21,000 on January 14. Notably, Bitcoin’s momentum has translated to one of the extended winning streaks for the asset in almost two years.
Bitcoin’s sustained capital inflows highlight the boost in crypto markets after the United States’ latest consumer price index (CPI) for December, which hit 6.5% on an annual basis.
The reporting has been interpreted as a sign that the Federal Reserve is winning the battle to slow down inflation. This factor translates to the possibility of risky assets like Bitcoin not facing further effects of a stiff monetary-policy tightening pressure.
With Bitcoin having witnessed bullish momentum recently and reversing the general effects of the FTX crash, investors are still wondering where the asset’s price could head next. Indeed, the main point of concern is whether the bear market is over or not.
Investors still need to observe caution, considering Bitcoin is still facing bearish sentiments that could reverse the current gains. For example, cryptocurrency entities are yet to recover from the effects of the macroeconomic environment, announcing a series of layoffs alongside the possibility of the U.S. forming a House sub-committee on cryptocurrencies.Over $70 billion pumped into Bitcoin this week; More buying power ahead? — Cryptocurrency News!
Categories: Economic History