Bitcoin has increased 7% to 36% in the first week of January every year since 2018

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2022-01-03 04:27:47

Some analysts are expecting big things for Bitcoin in the near future as all institutional sales are completed and capital is deployed to the market.

Some crypto market analysts are highlighting the potential for a green first week in crypto markets in January as part of what economist and trader Alex Krüger calls “ first week of the year effect”.

Krüger pointed out in a tweet on December 29 that for the past four years in a row, Bitcoin (BTC) has posted positive returns in the first week of January, ranging from 7% to 36% over the period. from 2018 to 2021.

In 2021, BTC went from $28,653 to $41,441 in the first week of January.

When asked what happened in previous years, Krüger replied: “It’s just a matter of 2020 and 2021, the markets are different, so do with those two data points as you please.”

His upbeat outlook at the beginning of January came from his expectations of strong “capital inflows,” which seems to be in line with the views of Real Vision CEO Raoul Pal. Pal said in a Youtube interview on Dec. 27 that he believes the Bitcoin sell-off is over and January is off to a strong start as institutional capital is reinvested into the market.

ExoAlpha CEO David Lifchitz believes organizations are still selling even with less than 24 hours left in 2021 to limit tax losses. It is possible that the recovery in the first week of January could be correlated with this phenomenon.

Fintech conglomerate and asset manager deVere CEO Nigel Green believes that December is shaping up to be Bitcoin’s worst month since May 2021 due to what he calls “panic sellers.” de facto giving away their cryptocurrencies to wealthy buyers.”

However, he is bullish on the largest cryptocurrency by market capitalization in the long term. Green feels that Bitcoin can protect investors from global inflation and that “decentralized, global, borderless currencies are the future.”

However, not everyone is optimistic about cryptocurrencies in 2022.

University of Sussex Finance Professor Carol Alexander told CNBC that BTC could drop as much as $10,000 by 2022. However, she is a skeptic and believes that BTC has no fundamental value and that it has been reached. peak in this cycle.

More complete information comes from Todd Lowenstein, director of equity strategy at Union Bank. His view is that “Goldilocks conditions,” such as COVID financial stimulus packages and low interest rates that favor high asset prices, are coming to an end that will have a significant negative impact on BTC and other currencies. traditional market by 2022.

“Goldilocks conditions are ending and the wave of liquidity is dwindling, which will disproportionately harm overvalued asset classes and speculative sectors of the market including even cryptocurrencies”.


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