Bitcoin: See Key Developments That Could Affect The Asset This Week

Over the past few weeks, the Fed’s decisions and the intensity of macroeconomic data have been effective in pricing in cryptocurrency markets , especially Bitcoin. After a few weeks under pressure, risk markets started out calmer this week after pricing in the latest data.

Data due out this week include US Consumer Confidence tomorrow and Purchasing Managers’ Index on Wednesday and Friday. This data can have an indirect effect on the price of Bitcoin. US consumer confidence, to be announced tomorrow, was at 107.1, below expectations of 109 in January. Analysts expect a slight increase, reaching 108.5 in February. An uptrend in the dollar index is likely in the event of a higher sentiment in consumer confidence, although this is thought to have a negative impact on the Bitcoin market.

Among other important data to be released this week, the US Manufacturing Purchasing Managers’ Index came in at 47.4 in January, down from a forecast of 48. By the time the data was released last month, there were an increase in the Bitcoin price due to the DXY crash . After this short-term effect, the price of Bitcoin dropped as the dollar index strengthened.

The fact that the PMI index, which is among the data that the Fed closely follows, is higher than expected can be interpreted as corroborating the view that the Fed is being successful in its policy and, if so, can create pressure additional information on the price of. On the other hand, while the Non-Manufacturing Sector PMI is another key data tracked by the Fed, positive data that is above expectations could create negative effects for BTC in the short term as it has a positive effect on DXY.

Gensler wants altcoins under SEC jurisdiction, excluding Bitcoin

SEC Chairman Gary Gensler stated in a recent interview that the SEC has all the legal resources to oversee the crypto industry.

In reiterating his position on Bitcoin, Gensler said that there may be a group of startups related to all crypto assets except Bitcoin, and there are foundations that use these assets. In light of this, he stated that investors expect to profit from cryptocurrencies by following these groups.

Although the SEC’s position that sees Bitcoin as a commodity does not change, it continues to increase its pressure on the altcoin market, which may affect Bitcoin’s dominance rate in the coming days.

1,000 BTC moves for the first time in 4 years

According to Blockchain data, the transfer of 1,000 BTC purchased about 4 years ago took place. The assets, which have seen a significant 575% appreciation since the purchase date, are considered large enough to upset the market.

CryptoQuant author JA Maartun pointed out that the 1,000 BTC transferred was received on Feb 23, 2019, when the BTC price was $3,468. That is, Bitcoins purchased for $3.4 million are currently worth around $23.4 million. Furthermore, it is mentioned that there is no definitive evidence that the current transfer will be made at the moment, since the current transfer is made to another account of the same person or institution.

The number of Bitcoin whales is decreasing

Bitcoin price is still far from its peak despite the upward movement in January. Bitcoin price performance remains weak as big investors still haven’t moved enough.

According to data provided by Glassnode, the number of Bitcoin whales has dropped to a 3-year low. Currently, the number of investments with 1,000 BTC or more in their portfolio is recorded as 1,663. This number was last seen in February 2020 when Bitcoin was below $10,000. The peak was seen in February 2021, with 2,161 wallets containing more than 1,000 BTC.

Reference source: investing.com