Some analysts are expecting big things for Bitcoin in the near future when all the institutional selling has completed and capital gets deployed to the market.
Some crypto market analysts are highlighting the potential for a green first week on the crypto markets in January as part of what economist and trader Alex Krüger calls the “first week of the year effect.”
Krüger pointed out in a Dec. 29 tweet that for the past four years straight, Bitcoin (BTC) has enjoyed positive returns in the first week of January ranging from 7% to 36% between 2018 and 2021.
In 2021, BTC grew from $28,653 to $41,441 in the first week of Jan.
When asked what had happened in previous years, Krüger replied, “tbf only 2020 and 2021 matter, different markets, so do with those two data points as you will”.
His optimistic outlook for early January comes from his expectation of strong “fund inflows,” which appears to be in line with the sentiments of Real Vision CEO Raoul Pal. Pal said in a Youtube interview on Dec. 27 that he believed the sell-offs on Bitcoin were finished, and that January would have a strong start as institutional capital gets reinvested in the market.
ExoAlpha CEO David Lifchitz believes institutions are still selling even with less than 24 hours remaining in 2021 in order to lock in tax losses. It’s possible that a January first week rebound could be correlated with the phenomenon.
Fintech and wealth management firm deVere Group CEO Nigel Green believes that December has shaped up as Bitcoin’s worst monthly showing since May of 2021 due to what he calls “panic sellers practically giving away their cryptocurrencies to wealthy buyers.”
Lets see how it goes 🙂