Bitcoin (BTC) continued the new year with a series of weak price movements, while on January 7th, liquidity reached new lows. Sharing his latest predictions on Twitter, Crypto Ed says that BTC may deepen the decline after breaching September levels. Here are the details…
Crypto Ed: Bitcoin price should close above $42,400
Data from TragView shows BTC/USD at lowest overnight since September It showed that it reached the levels and fell to $40,938 on Bitstamp. The pair initially bounced off $42,000 but later renewed its decline, surpassing the bottom seen in the liquidation tier in December. The discussion among Analisdollarserin focuses on the occurrence of a similar event with targets including a crash below the September low of $30,000. Twitter’s Crypto Ed warned, as part of his latest predictions, that “it could drop further with a liquidation wick below September lows.”
Analisdollarser suggested that the headwinds came from events in Kazakhstan, which is home to an estimated 18% of the Bitcoin hash rate. After mass nationwide internet outages this week, hash rate estimates began to drop by around 20 exahash per second (EH/s) from the previously ATH level of 192 EH/s, reminiscent of last year’s Chinese miner migration. Apart from these, as Kriptokoin.com , former BitMEX CEO Arthur Hayes shared that he expects a 90% collapse from the altcoin market. In his latest blog post, Hayes talks about how Fed decisions can affect the cryptocurrency market:
Given the law of large numbers, a simple resumption of the previous trend in asset purchases would not cause money supply growth to accelerate suddenly and sharply. Therefore, while risky assets – including crypto – rejoice, this asset is the best case. Even if that happens, the only way the crypto markets will rise is if the Fed publicly opens the faucets and then fiat flows into crypto.
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