Cryptocurrency

Since 2018, Bitcoin has risen by 7% to 36% in the first week of January each year

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Some crypto market analysts emphasized the green potential of the first week of the crypto market in January as part of what economist and trader Alex Krueger called the “first week of the year effect.”

Kruger stated in a report on December 29 tweet In the past four years, Bitcoin (Bitcoin) A positive return from 7% to 36% in the first week of January between 2018 and 2021.

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

When asked what happened in previous years, Kruger Replied, “Tbf is only important in 2020 and 2021, different markets, so you can deal with these two data points at will”.

His optimistic outlook for early January comes from his expectation of strong “fund inflows”, which seems to be in line with the sentiment of Real Vision CEO Raoul Pal. In an interview with Youtube on December 27th, Pal stated that he believes the Bitcoin sell-off is over, and January will have a strong start With institutional capital reinvested in the market.

David Lifchitz, CEO of ExoAlpha, believes that even if there are less than 24 hours left by 2021, the institution is still selling in order to Lock in tax lossesThe rebound in the first week of January may be related to this phenomenon.

Nigel Green, CEO of deVere Group, a fintech and wealth management company, believes that December has become Bitcoin’s worst since May 2021 because “panic sellers actually gave away their cryptocurrency to wealthy buyers” Monthly performance.

However, he has long been optimistic about the cryptocurrency with the largest market value. Green believes that Bitcoin can protect investors from the effects of global inflation, and that “a borderless, global, and decentralized currency is the future.”

However, not everyone is optimistic about the cryptocurrency in 2022.

Carol Alexander, Professor of Finance, University of Sussex Tell CNBC BTC may fall to US$10,000 in 2022. However, she is skeptical. She believes that BTC has no fundamental value and has reached its peak in this cycle.

related: MicroStrategy purchased 1,914 Bitcoins and now holds nearly $6B of cryptocurrency

Todd Lowenstein, chief equity strategist at United Bank, gave a smarter view. His view is that “Goldilocks conditions”, such as the COVID financial stimulus plan and low interest rates that are conducive to high asset prices, are about to end, which will have a significant negative impact on BTC and traditional markets in 2022.

“The situation of Goldilocks is ending, and the wave of liquidity is fading, which will cause disproportionate damage to overvalued asset classes and market speculation, including cryptocurrencies.”