Elon Musk, Bitcoin and the Reddit raiders: 6 things to watch for BTC price this week
Bitcoin (BTC) starts a new week with $30,000 intact and a message of back up from the world's richest man — what can we expect next?
As trading resumes around the world, the largest cryptocurrency is withal lacking decisive momentum up or downwards.
Cointelegraph takes a look at five factors which could play a role in shaping Bitcoin price trajectory in the coming days.
Stocks wary of "Reddit raiders"
Equities began Monday with volatile behavior after seeing their worst performance since October last week.
In what is likely to become a continued narrative, markets are even so feeling the impact of a retail investor defection which turned sour afterward regulators and trading platforms stepped in to stop them from participating.
While involving United states companies, the knock-on effects have been felt effectually the global economic system, with Asia likewise seeing pressure before a Mon rebound.
Nevertheless, a echo of last calendar week's commotion could weaken an already shaky stocks environment, analysts warn.
"We recollect that the vulnerabilities are in that location, and while we do non know precisely which catalysts might sally or their exact timing (including some of the recent retail-oriented pushes against heavily shorted stocks), we suspect that they would derail the current rally and provide entry points that may be 10% lower," Tobias Levkovich, principal U.South. equity strategist at Citigroup, wrote in a note to clients quoted by CNBC on Sunday.
The timing of the retail move could inappreciably have been more apt, coming as many stocks indexes see all-time highs despite restrictions on daily life and economic activity increasingly across the U.S. and the western world due to coronavirus.
A separate thorn in the side of U.S. policy comes in the form of continued disagreement over the size of a fresh economical stimulus package. New President Joe Biden's $1.ix trillion plans have been challenged, and Republicans are instead offering a package worth $600 billion — almost 70% less.
Ammous warns over "shitcoin" silverish
With global consciousness waking up to the disparities between how those restrictions bear upon the rich and the poor, investors' appetite for a wake-up phone call seems little dented despite warnings from authorities.
This time, however, it seems not more stocks are on their radar, but precious metallic silver. In Mon trading, silver hit its highest levels since 2012 at nearly $29 per ounce.
Gains have been brisk, with 15% added in the past iv days alone — since the retail stocks frenzy took a turn for the worse.
Silver soars past $30 a troy ounce as Reddit-fuelled buying frenzy continues for 3rd day. #Silversqueeze pic.twitter.com/mLmasUBrq1
— Holger Zschaepitz (@Schuldensuehner) February 1, 2021
Unsurprisingly, the phenomenon has been accompanied past a slew of calls for those investors to carelessness relatively lackluster silver and instead pile into Bitcoin.
"REMINDER… SILVER IS A SHITCOIN," Saifedean Ammous, author of the pop book, "The Bitcoin Standard," summarized to Twitter followers at the weekend.
"Its stock to flow ratio is around 3. Whatever happens in the paper market doesn't matter because it'southward very like shooting fish in a barrel to mine and recycle tons and tons of silver and bring it on the market, crashing the price. Pumping silvery is a losing game."
Ammous was referencing the widely-acclaimed stock-to-flow method of analyzing the scarcity of an asset based on how much is added to its existing supply in a given menses. The same model delivers the verdict that Bitcoin is the "hardest" of all monies to ever exist cheers to its fixed diminishing emission.
Even so, some saw the potential if the same group of retail investors were to buy upwardly silverish en masse. For veteran trader Peter Brandt, a possible target is $102 or 250% from current levels.
Musk: I'1000 "late to the party" with Bitcoin
Just when Bitcoin supporters were feeling left out, however, did the richest man in the world step in with rare words of encouragement.
In an interview with Clubhouse aired late Sun, Elon Musk openly confirmed that he was a "supporter" of Bitcoin.
"I've gotta watch what I say here; some of these things tin can really move the marketplace," he began.
Musk revealed that even his friends had tried to onboard him over the years, fifty-fifty feeding him a slice of a Bitcoin block in 2013. Even so, having held off on closer involvement, he now admits that he is "late to the political party."
"So I was a little wearisome on the uptake in that location, my apologies," he continued.
"I had to retrieve most it for a fleck, but I do at this signal remember that Bitcoin is a good matter and and then I am a supporter of Bitcoin, similar I said — late to the political party merely I am a supporter of Bitcoin."
As Cointelegraph reported, final calendar week, the Tesla and SpaceX CEO added Bitcoin as the but content on his Twitter biography. Amid suspicions that it was a hoax, Musk nonetheless sent BTC/USD skyrocketing for a cursory menses, the pair adding $5,000 in minutes as users caught on.
The latest interview, however, has seemingly had piddling affect, with Bitcoin remaining at the lower cease of its broad trading corridor which stretches betwixt $30,000 and $40,000.
Huge withrawals leave exchanges
While it remains unknown whether Musk has bought BTC or whether he plans to do so in a personal or corporate capacity, outflows from exchanges continue to betoken big players are buying for the long term.
As noted by Danny Scott, CEO of United kingdom based substitution CoinCorner, and others, a single contempo motion out of major exchange Coinbase lone was worth $500 1000000.
"Are we about to kick off February with another institute ownership," he quizzed on Monday.
A large amount of #BTC merely left Coinbase
— Alistair Milne (@alistairmilne) Jan 31, 2021
... large amounts leaving nearly all exchanges really flick.twitter.com/AegGKOMQLS
Data additionally shows large amounts of BTC leaving exchanges for private wallets, a classic indicator of the desire to hodl rather than merchandise or sell.
According to on-concatenation analytics resource CryptoQuant, meanwhile, the total BTC balance across exchanges is at present dorsum at its everyman in at to the lowest degree one year after a cursory flow of increases.
Altcoins overshadowed by XRP, DOGE
Bitcoin may have to fight for prevalence not with non-crypto investment options but with altcoins in the coming days.
As rumors spread that Reddit investors plan to target XRP this week, the quaternary-largest cryptocurrency began outperforming the major market cap tokens on Mon. 24-60 minutes gains have hit nearly 40%, marking a improvement for the embattled coin which previously dipped as low as $0.xvi from highs above $0.60.
"Today is the 24-hour interval we should be seeing a massive pump on $XRP. My approximate: we'll come across 95% of the people lose money on it," Cointelegraph Markets analyst Michaël van de Poppe forecast on Twitter.
Last week saw a concerted endeavor to pump the price of meme-based altcoin Dogecoin (DOGE), a trend which continues as DOGE/USD increased 37% on Mon.
The pair is now almost at $0.04, a transformation versus even days agone and an easy new all-time high.
In his interview, Musk, who is responsible for previous bottom DOGE pumps, chose his words carefully nigh altcoins in general.
"I don't have a stiff opinion on other cryptocurrencies, I mean, I occasionally make jokes most Dogecoin but that was really just meant to be jokes," he said.
"Dogecoin is made equally a joke to make fun of cryptocurrencies, obviously, only fate loves irony."
Eyes on $34,000 back up flip
Finally, technical assay of Bitcoin produces clear levels which need to exist either reclaimed or avoided to determine market direction.
As Bitcoin has been ranging for several weeks since hit $42,000 best highs last month, commentators are still waiting to see if lower levels demand a retest before the overall bull market place can continue.
For fellow Cointelegraph Markets analyst filbfilb and others, $34,000 now forms an essential bulwark to flip to support in club to secure further upside.
"Overall Supply weighing downwards market, until this subsides sellers in control as seen by lower highs and lower lows. LTFs evidence some effort to suspension this but beginning 34k must exist reclaimed," he summarized on Saturday.
Above $36,700, there is "aggressive selling," he added, while need outpaces supply at $xxx,000 and below.
Data from Binance'due south orderbook at the time of writing shows incremental sell pressure from $34,000 all the style to the record highs.
Source: https://cointelegraph.com/news/elon-musk-bitcoin-and-the-reddit-raiders-6-things-to-watch-for-btc-price-this-week
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