Bitcoin (BTC) traded above $17,000 on Jan. 10 as risky assets awaited new policy clues from the US Federal Reserve.
Fed Chairman Powell kicks off US Macro Trigger Week
Data from Cointelegraph Markets Pro and TradingView show BTC/USD is consolidating after hitting $17,396 on Bitstamp the previous day, its highest since December 16th.
The pair rose alongside gold at the start of the week, while US stocks also cooled slightly as they waited for a potential Fed catalyst.
Fed Chairman Jerome Powell is set to speak at a central bank meeting later that day, with bulls hoping for a more dovish tone after months of falling inflation.
Nevertheless, the latest Consumer Price Index (CPI) data covering December 2022 was not released until January 12th.
When it comes to short-term Bitcoin price movements, Michael van de Poppe, founder and CEO of trading firm Eight, has warned against being overly optimistic.
“With Powell’s speech approaching yesterday, Bitcoin is vetoing in key areas + simply a key resistance zone,” he said. wrap up is January. 9.
“Maybe sweep towards $17.1k or wait for $16.9k before bouncing again towards $17.5k for bearish divergence. Good volatility. Lots of drops in altcoins too. I have.”
Meanwhile, George, a full-time Bitcoin trader and social media favorite, has eyed a potential intraday range of $17,000 as support.
“I believe we can establish a new range between 17k and 17.6k in the next few days,” part of the update Verified.
Elsewhere, there was no sign of relief for the US dollar as strength continued to decline on a potential boost from cryptocurrencies. The US Dollar Index (DXY) threatened to challenge 103 for a second straight day of support.
GBTC ‘Discount’ Reversed Despite Investor Pressure
More noticeable than the slight rise in BTC spot price was the rise of the largest Bitcoin institutional investment vehicle.
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Starting January 6th, Grayscale Bitcoin Trust (GBTC) began a marked recovery, with the stock gaining 17% in three days.
In doing so, the GBTC discount (Spot BTC) to Net Asset Value has shrunk to its lowest level in months.
The negative “premium”, formerly a premium, rose from a record low of 48.9% on Dec. 13 to 38.5% on the day, according to Coinglass data.
Grayscale’s parent company, Digital Currency Group (DGC), continues to come under fire in a concerted effort to give investors back access to cash.
The views, thoughts and opinions expressed herein are those of the author only and do not necessarily reflect or represent the views or opinions of Cointelegraph.
