'Coin days destroyed' spike hinting at BTC price bottom? 5 things to watch in Bitcoin this week
Bitcoin (BTC) heads into the last week of February lower but showing signs of strength as a key support level holds.
After a nervous few days on macro and crypto markets alike, BTC/USD is below $40,000, but signs are already there that a comeback could be what starts the week off in the right direction.
The situation is far from easy — concerns over inflation, United States monetary policy and geopolitical tensions are all in play, and with them, the potential for stocks to continue suffering.
Further cues from the Federal Reserve will be hot property in the short term, with March expected to be when the first key interest rate hike is announced and delivered.
Could it all be a storm in a teacup for Bitcoin, which on a technical basis is stronger than ever?
Cointelegraph presents five factors which could influence price action in the coming days as storm clouds remain over the global economy.
The main story for Bitcoin traders this week comes from outside — the post-Covid economic outlook and worries over relations with Russia.
The first comes in the form of how the Fed will respond to soaring inflation, and more specifically whether its hinted interest rate hikes will start in March as anticipated.
Such hikes are bad news for booming equities, which have had two years of unbridled gains thanks to the giant liquidity program from the Fed to counter another Covid-era demon: lockdowns and unprecedented controls on economic activity.
With the “easy money” soon to start drying up, something of a reality check could be in store for everyone.
In terms of rate hikes, too many too soon risk recession — a topic already under discussion as a potential “necessary evil” for other countries — while a light touch could on the contrary fail to
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