{"id":162314,"date":"2021-01-25T11:44:20","date_gmt":"2021-01-25T08:44:20","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/spectacular-bust-for-stocks-5-things-to-watch-in-bitcoin-this-week\/"},"modified":"2021-01-25T11:44:20","modified_gmt":"2021-01-25T08:44:20","slug":"spectacular-bust-for-stocks-5-things-to-watch-in-bitcoin-this-week","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/spectacular-bust-for-stocks-5-things-to-watch-in-bitcoin-this-week\/","title":{"rendered":"# &#8216;Spectacular bust&#8217; for stocks: 5 things to watch in Bitcoin this week"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23a3cb5728d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23a3cb5728d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/spectacular-bust-for-stocks-5-things-to-watch-in-bitcoin-this-week\/#Stocks_face_a_%E2%80%9Cspectacular_bust%E2%80%9D_%E2%80%94_analyst\" >Stocks face a &#8220;spectacular bust&#8221; \u2014 analyst<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/spectacular-bust-for-stocks-5-things-to-watch-in-bitcoin-this-week\/#Dollar_seen_higher_in_short_term\" >Dollar seen higher in short term<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/spectacular-bust-for-stocks-5-things-to-watch-in-bitcoin-this-week\/#JPMorgan_BTC_institutional_demand_%E2%80%9Cnot_strong_enough%E2%80%9D\" >JPMorgan: BTC institutional demand &#8220;not strong enough&#8221;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/spectacular-bust-for-stocks-5-things-to-watch-in-bitcoin-this-week\/#BTCUSD_sees_firm_bounce_at_31000\" >BTC\/USD sees firm bounce at $31,000<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/spectacular-bust-for-stocks-5-things-to-watch-in-bitcoin-this-week\/#Ether_clips_new_all-time_high\" >Ether clips new all-time high<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># &#8216;Spectacular bust&#8217; for stocks: 5 things to watch in Bitcoin this week <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin (BTC) starts a new week with $30,000 reconfirmed as support but also a fresh vote of no confidence from the mainstream.<\/p>\n<p>After a more or less steady weekend, the largest cryptocurrency remains firmly in its established trading corridor \u2014 between $30,000 and $40,000. What\u2019s next?<\/p>\n<p>Cointelegraph takes a look at the factors impacting price performance this week.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Stocks_face_a_%E2%80%9Cspectacular_bust%E2%80%9D_%E2%80%94_analyst\"><\/span>Stocks face a &#8220;spectacular bust&#8221; \u2014 analyst<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Stocks showed clear upward momentum on Monday, led by Hong Kong as a new favorite target for Chinese investors. <\/p>\n<p>Sentiment received a major boost earlier this month after United States President Joe Biden announced a $1.9 trillion coronavirus stimulus package. While already near all-time highs, the cash injection propelled markets still higher. <\/p>\n<p>\u201cInvestors see continued open-spigot monetary policy and more fiscal stimulus,\u201d Marc Chandler, chief market strategist at Bannockburn Global Forex, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-01-24\/asian-stocks-set-for-muted-start-dollar-steady-markets-wrap\">told<\/a> Bloomberg. <\/p>\n<blockquote><p>\u201cCoupled with the vaccine\u2019s rollout, it will generate a critical mass of more robust economic growth as the year progresses.\u201d<\/p><\/blockquote>\n<p>That \u201copen-spigot\u201d money printing position is nonetheless cause for concern among both Bitcoin proponents and more critical traditional market players. Last week, Jeremy Grantham, CEO of asset management giant GMO, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-01-22\/grantham-warns-of-biden-stimulus-further-inflating-epic-bubble\">flatly warned<\/a> that stocks were in a bubble, and that stimulus would only make it worse.<\/p>\n<p>The good times, he warned, could last as little as \u201ca few weeks.\u201d<\/p>\n<p>\u201cWe will have a few weeks of extra money and a few weeks of putting your last, desperate chips into the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>, and then an even more spectacular bust,\u201d he predicted in a Bloomberg interview. <\/p>\n<blockquote><p>\u201cWhen you have reached this level of obvious super-enthusiasm, the bubble has always, without exception, broken in the next few months, not a few years.\u201d <\/p><\/blockquote>\n<p>The impact of such a crash on Bitcoin remains open ended. Despite its increasing reputation as a non-correlated safe haven, BTC\/USD continues to be influenced by macro factors, in particular the strength of the U.S. dollar. A scenario similar to last March\u2019s cross-asset crash also looms large in traders\u2019 memories.<\/p>\n<p>Grantham, meanwhile, was no more upbeat about a post-coronavirus world than the current one.<\/p>\n<p>\u201cYou will not make a handsome 10- or 20-year return from U.S. growth stocks,\u201d he said.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/56bfe52b-1dc7-4c5b-b870-42c20a3cc71d.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin macro correlation chart. Source: Digital Assets Data<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Dollar_seen_higher_in_short_term\"><\/span>Dollar seen higher in short term<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Equities surging ahead meanwhile spelled short-term bearishness for USD on Monday. <\/p>\n<p>The U.S. dollar currency index (DXY), which pits the dollar against a basket of major trading partner currencies, came down from recent gains to test support at 90 once again.<\/p>\n<p>A reversal of last week\u2019s scenario, the dollar is now on the back foot as Bitcoin displays familiar inverse correlation to DXY and strengthens above $33,000.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/8ddb1b65-a202-4f67-b9ad-e99581909c5a.png\"><figcaption style=\"text-align: center;\"><em>U.S. dollar currency index (DXY) 1-hour candle chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Incoming U.S. Treasury Secretary Janet Yellen will not be drawn on her plans for the currency, claiming that she wants neither an overly strong dollar, nor one which has been as weak as during the Trump administration\u2019s tenure.<\/p>\n<p>\u201cI think this move higher that we\u2019ve seen this week, I think it\u2019s got some legs to it,\u201d Dave Floyd, founder of Aspen Trading, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/tdameritradenetwork.com\/video\/rB4AoXcGHXiBdwfokeUJBg\">told<\/a> TD Ameritrade in a bullish short-term prognosis for DXY.<\/p>\n<blockquote><p>\u201cI think we have more to run; there\u2019ll be some dips along the way, of course \u2014 nothing moves up in a straight line \u2014 but I think we\u2019re going to see a stronger dollar for the next month or two at the bare minimum, maybe even longer.\u201d<\/p><\/blockquote>\n<p>Zooming out, however, analysts believe that USD is headed for sustained losses as a result of increasing debt and the economic damage wreaked by the pandemic. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"JPMorgan_BTC_institutional_demand_%E2%80%9Cnot_strong_enough%E2%80%9D\"><\/span>JPMorgan: BTC institutional demand &#8220;not strong enough&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Also at risk of suppression is Bitcoin, traditional finance analysts claim in a familiar bearish take on the largest cryptocurrency.<\/p>\n<p>In a note to investors on Friday, a team at JPMorgan led by Nikolaos Panigirtzoglou warned that declining demand for industry giant Grayscale\u2019s Bitcoin Trust (GBTC) meant that upside is unlikely to return to the market.<\/p>\n<p>\u201cAt the moment, the institutional flow impulse behind the Grayscale Bitcoin Trust is not strong enough for Bitcoin to break out above $40,000,\u201d it reads, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-01-25\/bitcoin-return-to-40-000-in-doubt-as-grayscale-fund-flows-slow\">quoted<\/a> by Bloomberg.<\/p>\n<p>Panigirtzoglou et al. pointed to a decline in the GBTC premium \u2014 the price of the Trust over the Bitcoin spot price \u2014 as proof that uptake is slowing after a record few months. Grayscale itself, meanwhile, is busy buying more BTC than ever for its assets under management \u2014 Jan. 15 saw its biggest-ever single-day buy-in worth more than $600 million.<\/p>\n<p>JPMorgan, however, is not alone. As Cointelegraph reported, analysts at QCP Capital likewise highlighted \u201cinstitutional exhaustion\u201d as a key market force at work in Bitcoin under current conditions.<\/p>\n<p>\u201cThe near-term balance of risks is still skewed to the downside,\u201d Panigirtzoglou\u2019s note added.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/5bd2ad78-1f7f-4cd9-a5d6-25f8043f1450.png\"><figcaption style=\"text-align: center;\"><em>Grayscale Bitcoin holdings vs. BTC\/USD chart. Source: CryptoQuant<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"BTCUSD_sees_firm_bounce_at_31000\"><\/span>BTC\/USD sees firm bounce at $31,000<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After recovering from a brief dip below $30,000 last week, BTC\/USD is decidedly non-volatile heading into the new week\u2019s trading.<\/p>\n<p>The calmer conditions give some welcome respite to traders, who watched as a combination of rumors and selling sparked dramatic price movements prior to the weekend. <\/p>\n<p>\u201cWhat\u2019s your favourite narrative as to why bitcoin is correcting after going vertical? The answer is in the question,\u201d popular trader\u00a0filbfilb summarized to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/filbfilb\/status\/1352398724128006147\">Twitter<\/a> followers on Friday.<\/p>\n<p>With a return to relative stability over the weekend, however, eyes are now focusing on a potential move higher within the trading corridor between $30,000 and $40,000 in which Bitcoin has resided this month after hitting new all-time highs of $42,000.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p>\u201cBitcoin saw a very strong reaction at $31k. Bearish scenario invalidated for now. Prob $36k coming, then reassess,\u201d in-house analyst Joseph Young <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/iamjosephyoung\/status\/1353560665831530497\">offered<\/a> on Monday.<\/p>\n<p>Young previously <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/iamjosephyoung\/status\/1353371048406786048\">noted<\/a> that on-chain indicators were slowly shifting to bearish, fuelling already dubious price action without clear direction.<\/p>\n<p>Such a move higher would take BTC\/USD to familiar levels but still without breaking the paradigm which has characterized the pair in recent weeks. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/99909817-9af2-4265-ac8b-5defeb10b4b6.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n<p>In favor of bulls is a Jan. 29 expiry of $4 billion in Bitcoin options.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ether_clips_new_all-time_high\"><\/span>Ether clips new all-time high<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin cooling and ranging after its vertical phase meanwhile provides what some consider to be the perfect conditions for an altcoin rally.<\/p>\n<p>Signs that alts were waking up were already present earlier in January, but last week\u2019s volatility in Bitcoin shook out some early gains. <\/p>\n<p>In a return to form this week, however, largest altcoin Ether (ETH) outperformed with a return to all-time highs of $1,475 and daily gains of 7.8%. A breakout versus BTC was also visible.<\/p>\n<p>The move clearly beats other large-cap altcoins, which were flat on Monday.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/bc9b4c5d-0cba-4f09-a9f7-c9f7b95b5111.png\"><figcaption style=\"text-align: center;\"><em>ETH\/USD vs. ETH\/BTC 1-day candle chart (Bitstamp). Source: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/ETHUSD\/\">TradingView<\/a><\/em><\/figcaption><\/figure>\n<p>\u201cAt this point and for a while, ETH leads, Alts season follows and bitcoin still explodes higher. Everyone wins,\u201d Raoul Pal, founder of Real Vision, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/RaoulGMI\/status\/1353533828262998016\">predicted<\/a>.<\/p>\n<p>Ever the optimist, Pal <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ealed to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> followers not to listen to disparaging narratives about the crypto markets.<\/p>\n<p>\u201cEnjoy and take on board the FUD with a open mind but remember, in an exponential bull market everyone wants to spook you out of your trade. It\u2019s really not easy,\u201d he added.<\/p>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/spectacular-bust-for-stocks-5-things-to-watch-in-bitcoin-this-week\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# &#8216;Spectacular bust&#8217; for stocks: 5 things to watch in Bitcoin this week &#8221; Bitcoin (BTC) starts a new week with $30,000 reconfirmed as support but also a fresh vote of no confidence from the mainstream. After a more or less steady weekend, the largest cryptocurrency remains firmly in its established trading corridor \u2014 between&#8230;<\/p>\n","protected":false},"author":1,"featured_media":162315,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvNTBkY2YzNzUtOGU3Zi00NWRjLWE3ZDAtNmE0NGY2NzQzZjU4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,81209,74937,82402,74891,73785,70359],"class_list":["post-162314","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-options","tag-bitcoin-price","tag-ether-price","tag-ethereum","tag-markets","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/162314","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=162314"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/162314\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/162315"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=162314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=162314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=162314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}