Bitcoin Price Holds $17,000 Ahead of Jerome Powell’s Speech as GBTC Jumps to Multi-Month Highs

Bitcoin (BTC) held above $17,000 on Jan. 10 as threat belongings awaited additional coverage indicators from the US Federal Reserve.

BTC/USD 1-hour candlestick chart (Bitstamp). Supply: TradingView

Powell kicks off US Macroeconomic Catalysts Week

Information from BoxNews Markets Professional and TradingView confirmed the BTC/USD pair consolidating after hitting $17,396 on Bitstamp the day prior to this, its highest since Dec. 16.

The pair rallied in step with gold earlier within the week, cooling barely as US shares additionally waited for attainable catalysts from the Fed.

Fed Chairman Jerome Powell was scheduled to handle a central financial institution convention later within the day, with bulls hoping for a extra bearish tone after a number of months of declining inflation.

Nonetheless, the newest knowledge from the Client Worth Index (CPI) comparable to December 2022 weren’t anticipated till January 12.

Michaël van de Poppe, founder and CEO of the buying and selling agency Eight, cautioned in opposition to short-term optimism.

“Bitcoin Rejecting In Essential Zone As Powell’s Speech Approaches Yesterday + Simply Essential Resistance Zone”, summarized on January 9.

“In all probability transfer in the direction of $17,100 earlier than one other bounce to $17,500 on bearish divergence or go lengthy $16,900. Good volatility. A number of dips in altcoins too.”

Explanatory chart of the BTC/USD pair. Supply: Michaël van de Poppe on Twitter

Full-time Bitcoin dealer George, who could be very common on social media, eyed a attainable vary for the day with $17,000 performing as assist.

“I feel we could possibly be establishing a brand new vary between 17,000 and 17,600 for the subsequent few days,” confirmed a part of an replace.

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In any other case, there have been no indicators of aid for the US greenback, whose energy continued to deteriorate in a possible increase to cryptocurrencies. The US Greenback Index (DXY) threatened to problem 103 as assist for the second day in a row.

1 hour candlestick chart of the US greenback index pair. Supply: TradingView

GBTC ‘low cost’ reverses regardless of investor strain

Extra hanging than the modest rally within the BTC spot worth was that of the most important institutional funding automobile in Bitcoin.

Beginning on January 6, Grayscale Bitcoin Belief (GBTC) started a pointy rally that despatched its worth up 17% in three days.

Thus, GBTC’s low cost to internet asset worth – the spot worth of BTC – was diminished to its lowest in a number of months.

The adverse “premium,” beforehand a premium, stood at 38.5% at this time, up from an all-time low of 48.9% on Dec. 13, in response to Coinglass knowledge.

Grayscale’s guardian firm, Digital Forex Group (DGC), continued to attract criticism amid a concerted effort by traders in search of to regain entry to their cash.

Chart of the GBTC premium in opposition to asset holdings in opposition to the BTC/USD pair. Supply: Coinglass

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