Cryptocurrency Market January 11 CHK: Bitcoin rallies 17,500, altcoins continue to rise slightly

Bitcoin touched $17,500 while the US Federal Reserve (Fed) declined to comment on policy.

Cryptocurrency Market

Market data shows that Bitcoin has bounced and peaked at $17,500 this morning, January 11th. The 24-hour trading volume is worth $16 billion.

Hope has centered on the new BTC price catalyst provided by the Fed in the form of a speech by Chairman Jerome Powell. However, speaking at the International Symposium on Central Bank Independence at Sweden’s central bank’s headquarters, Stockholm, Powell avoided the topic of US monetary policy altogether. .

In the absence of market triggers, both cryptocurrencies and U.S. stocks were flat during the first hour of trading on Wall Street. However, towards the end of the session, Bitcoin started to pick up momentum and bounced to the $17,500 region early this morning.

In a new analysis, Filbfilb, co-founder of the DecenTrader trading suite, outlined potential upside and downside targets for short-term BTC price action.

Strong volatility will come on January 12 with the release of Consumer Price Index (CPI) data for December.

“Buyers have entered the market below $16,500 over the course of the past two months,” he told Telegram channel subscribers, highlighting several weekly moving averages (WMAs) to watch out for.

The 20 WMA is located around $18,300, which is also the current high, previous support and strong resistance. If it breaks this key level, the top of the wedge will be the next target, at the 200 WMA of $24,000.”

Meanwhile, if the downtrend returns, a trip to the $14,000 bottom is still possible. Filbfilb continued: “Liquidity suggests that it could be a fight to get to the $24,000 figure. If the situation worsens, that will be the catalyst to get us back to $14,000 – $14,500.”

Altcoins resume slight upward momentum as Bitcoin hits $17,500 region. Leading the way was the WOO Network (WOO) with an increase of 11.5% on the day when it burned 705 million tokens. On the weekly frame, the project gained 35%, making it into the list of the 100 largest altcoins by market capitalization. Other projects such as GMX (GMX), Shiba Inu (SHIB), Aptos (APT), Holo (HOT), Apecoin (APE), Vechain (VET), Klaytn (KLAY), Avalanche (AVAX)… increased slightly from 2 – 5%.

Ethereum (ETH) also bounced slightly, approaching the $1,350 mark yesterday. However, the market-leading altcoin has yet to break out of this area and is trading around $1,337.

Macro factors

The US stock market rallied in Tuesday’s trading session (January 10), as stock prices maintained the uptrend of the first sessions of the year while investors waited for important economic data to be released. in this week. Crude oil prices also kept the gains of the previous sessions thanks to the dollar being stuck at a 7-month low and the US government’s forecast of a record high demand for gasoline.

At the close, the Dow Jones Industrial Average rose 186.45 points, or 0.56%, to 33,704.1 points. The S&P 500 index rose 0.7 percent to 3,919.25. Nasdaq was the largest gainer, closing the session with an increase of 1.01%, reaching 10,742.63 points.

It was the Nasdaq’s third straight session of gains, as optimism about weakening inflation encouraged investors to buy tech stocks that had fallen deeply. This is Nasdaq’s first three-session streak since November.

In the morning, billionaire investor Paul Tudor Jones expressed optimism about the stock market, saying that the US Federal Reserve (Fed) will not cause a crash in the economy. Mr. Jones forecast the Fed will stop raising interest rates before the economy can have a hard landing. While he did not give a specific forecast, Mr. Jones said demand for shares on Wall Street this year is strong due to stock buybacks by listed companies and corporate mergers.

“Additional demand for U.S. stocks will probably be closer to $1 trillion… The stock market will be up 7-8% this year,” Mr. Jones said.

US stock investors head into 2023 with concerns that rising interest rates could push the economy into recession. But now, many seem to be increasing their bets that inflation is starting to ease.

The market awaits the December inflation report scheduled for release on Thursday and the financial statements of several major banks due for release on Friday for clearer signs on the health of the economy. economy, thereby guiding the Fed’s interest rate expectations.

“Indices will probably struggle in tight and uncertain territory until the consumer price index (CPI) report is released and earnings season kicks off later this week. At the moment, I think the market is in a wait-and-see mode for what Fed officials have said recently,” said Megan Horneman, chief investment officer at Verdence Capital Advisors.

According to analysts’ forecasts, the US CPI in December increased by 6.5% over the same period last year, decelerating from the 7.1% increase recorded in January.

European stock markets fell on Tuesday, with the Stoxx 600 losing 0.59%. The MSCI All Country World Index of world stocks rose 0.3%, while the MSCI Emerging Markets Index gained 0.05%.

In the energy market, Brent crude oil futures in London rose $0.45/barrel, or 0.6%, to settle at $80.1/barrel. WTI oil futures in New York rose $0.49/barrel, or 0.6%, to settle at $75.12/barrel.

The USD exchange rate against a basket of 6 major currencies is at a 7-month low. This benefits the price of oil as it is an underlying commodity priced in USD.

In a report released on January 10, the Energy Information Administration (EIA) of the US Department of Energy forecast that global liquid energy consumption will reach an all-time high of 102.2 million bpd in the coming year. 2024, driven primarily by demand growth in countries such as India and China and reflecting trends in economic activity.

Speaking at an event in Sweden, Fed Chairman Jerome Powell avoided commenting directly on monetary policy and the economy. Therefore, investors in the oil market are also waiting for the US CPI report.

“Thursday’s data could easily clarify the direction of financial markets and oil markets in the coming weeks,” said Tamas Varga of PVM Oil. According to Mr. Varga, if the inflation data is lower than forecast, the dollar may continue to depreciate and oil prices will benefit further.

Oil prices rose for three consecutive sessions as China, the world’s largest crude oil importer and second largest crude oil consumer, reopened its borders over the weekend. China also just granted the second round of oil import quotas in 2023, bringing the total quota granted for this year to 20% higher than the same period last year.

“Oil prices are trying to form a bottom, as China has lifted most of its restrictions on international travel and trade,” said BOK Financial senior vice president Dennis Kissler.

However, analysts say a recovery in oil demand in China may provide only limited support to oil prices, given the current downward pressure on the global economy.

Barclays thinks oil prices could be $15-25/bbl lower than the bank’s $98/bbl forecast for oil prices in 2023 if “global production declines similar to the one seen in the previous year. 2008-2009”.

In the Global Economic Outlook report released in June 2022, the World Bank forecast that the global economy will grow by 3% this year. Thus, the WB’s latest forecast on world economic growth has nearly halved compared to more than 6 months ago.

The WB forecasts that global economic growth will accelerate to 2.7% in 2024, but this growth rate is still lower than the 2.9% achieved in 2022. In addition, the WB believes that the growth rate The average of the global economy in the period from 2020-2024 will reach less than 2%, the lowest 5-year average since the 1960s.

The world economy shrank 3.2% in 2020 when Covid raged, then recovered strongly in 2021 with a growth of 5.7%, according to data from the World Bank.

According to the World Bank, a sharp slowdown in advanced economies – including growth forecasts for both the US and the Eurozone this year were cut sharply to 0.5% – could signal a recession. new global economy, less than three years after the last recession. If so, it would be the first time in more than 80 years that the world has experienced two recessions in just a decade.