The first cryptocurrency added about 4% per day, showing the maximum growth over the past month.
Bitcoin briefly fell below $33,000, but began to grow in the American session, rising to $37,500 by the end of the day. The increase from the lows to the highs of the day was $4,700 (14%).
The BTC rebound intensified against the backdrop of a reversal of stock indices in the second half of stock trading in the United States. The S&P 500 index was able to end the day with a slight increase after 4 days of decline, although in the middle of the session it suffered the maximum losses in the last year and a half (about 4%).
Well-known Twitter expert Ton Weiss announced an ideal opportunity for a bitcoin reversal, writes RBC. According to him, BTC has reached the 20-month moving average (MA), which is at $34,000, and this is a “perfect opportunity” for a trend reversal and the asset’s return to growth.
Morgan Creek co-founder Anthony Pompliano believes that a trend reversal will occur only in the event of massive asset purchases by large investors. But at the moment they are not atoning for the fall.
Analyst Benjamin Cowen believes that Bitcoin could fall to $20,000. Rich Dad Poor Dad bestselling author Robert Kiyosaki also allows BTC to fall to this level, which he will use to buy.
Markets are preparing for the upcoming Fed meeting, the results of which will be announced on January 26. As expected, the regulator will signal its readiness at the meeting in March, along with the final curtailment of the quantitative easing program, to raise the key rate by 0.25%.
The weakening of arguments in favor of bitcoin as a currency and inflationary hedge against the backdrop of tightening the Fed's policy speaks of the potential onset of a "crypto winter", according to UBS bank. The current downturn in cryptocurrencies will pay off in “years” by investors rethinking digital assets.
“We believe that investors will look for purchases in the region of 20-30 thousand per bitcoin. Whether these purchases will be at the upper or lower limit depends, among other things, on the situation on the stock markets. The return of buyers there will support the demand for risk among institutions, ”says the GravityPlus analyst team.