(Bloomberg) — Bitcoin is likely to break above $46,000 in the near term, barring a macroeconomic “change of scenery” such as a shift in risk appetite, according to Wilfred Daye, head of Securitize Capital.
The cryptocurrency’s trading range narrowed this week due to the ongoing war in Ukraine and the US Federal Reserve’s decision to raise rates in line with expectations. Money volatility is at the end of the month totaling 5% to $40,700, so it’s down 40% to the decline from a November high.
“The long positions in bitcoin don’t have enough momentum to push prices above that level,” Daye said, adding that price momentum was weak over the past five trading sessions. “For bitcoin to break above that level, key ingredients like a tech rally and macroeconomic risk appetite are needed.”
Bitcoin prices have lately been mired in the tightest trading range since October 2020, which some attribute to long-term holders stepping in to buy when token prices drop while short-term investors cut back. the most substantial gains.
“Bitcoin is consolidating below $41,000 as the percentage of long-term holders in the market continues to rise,” said Marcus Sotirou, an analyst at UK-based digital asset brokerage GlobalBlock. “But for 2022, I can’t expect a sharp rebound in prices due to macroeconomic conditions.”
Billionaire cryptocurrency investor Michael Novogratz said Tuesday on Bloomberg TV that Bitcoin is likely to remain in a range between $30,000 and $50,000 as U.S. interest rates have risen. Previous performance data suggests that the token is unlikely to sustain a rally as the Fed tightens monetary policy during the year, marked.
Bitcoin Stuck in Range Barring Macro ‘Change of Environment’, Analyst Says
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