Thus, CoinsPaid Media has prepared for you a selection of the essential crypto market events that happened from January 22 to 28.
Bitcoin (BTC) correction
Bitcoin was at the heart of it all the whole week. Recall that during last Friday, January 21, its price fell from $43.000 to $36.000. On Monday morning, it was down to the level of $33.000. However, positions grew a bit during this week, and on Friday, January 28, Bitcoin was trading around $37.000.
Experts’ predictions split into two groups — optimistic and pessimistic.
Pessimistic Predictions: BTC Hits $20.000
Many experts expect that the first cryptocurrency might collapse to $20.000 in the near future, and crypto analyst Benjamin Cowen is among them. Importantly, he considers this scenario a worst-case yet probable one based on the Relative Strength Index (RSI). At the same time, the analyst notes that the drop to $20.000 would be an excellent opportunity for buying the cryptocurrency.
The same opinion was shared by Robert Kiyosaki, a well-known financial expert. He tweeted that he expected BTC quotes to fall to $20.000 and planned to use this opportunity to buy the asset. Kiyosaki called the market situation “great news” and pointed out that investors make a profit when they buy, not when they sell.
Arthur Hayes, a former CEO of BitMEX, also expects the decline of the first cryptocurrency to $20.000 in case of breaking the resistance level at $28.500. The expert believes there are high expectations for this level since it stopped Bitcoin’s decline in the summer of 2021. However, in Hayes’ opinion, this level is not as strong as investors expect.
Optimistic Predictions: BTC Hits $200.000
Against the background of the general sentiment, Bloomberg experts made an optimistic forecast. They opined that the Bitcoin correction period is nearing its end. In their analysis, both they and Benjamin Cowen relied on the Relative Strength Index (RSI), but their conclusions turned out to be the opposite. The experts noted that the index had fallen to its lowest value, at which a trend reverse and a return to growth usually occur. In such a state, the asset becomes highly oversold, and the “bears” lose the ability to influence its rate. The last time Bitcoin’s RSI went down to its lowest levels was in the summer of 2021, when the asset’s value fell to $28.000.
Trader Tone Vays also predicted the end of the Bitcoin correction. He noted that the cryptocurrency reached the 20-month moving average (MA), which passed at the level of $34.000. As the expert believes, this situation is an ideal opportunity for the trend reversal and the asset’s return to growth. Vays expects that in case of a rebound, Bitcoin’s value will quickly overcome the level of $40.000 and consolidate above it.
According to Anthony Pompliano, a founder of Morgan Creek Capital, the trend reversal to growth will occur in the case of massive purchases by large investors. But so far, investors have not shown such activity and do not “buy the dip,” the expert said. Pompliano predicts that massive purchases will begin only when the asset’s value becomes very attractive for investors, which probably implies the above-mentioned prospects of reducing the price to $20.000.
Trader Nicholas Merten said that the drop in BTC price below $33.000 might lay the basis for the rapid growth of the cryptocurrency in the fall of 2022. According to his forecast, the BTC value can exceed $200.000 already in November, in case the capitalization of Bitcoin will not fall below $600 billion. The expert explained his prediction by the fact that mass liquidations, corrections and fear fuel the rapid growth of the crypto market. This allows major investors to open large positions in crypto-assets at a reduced price. In addition, the trader noted that large investors always come at the peak of fear and repurchase it.
Meta Sells Diem
One of this week’s breaking non-Bitcoin news was that Meta, formerly known as Facebook, plans to sell Diem for $200 million to Silvergate Bank of California, a bank that serves crypto companies. This was reported by The Wall Street Journal, citing its own sources.
The Future of Crypto and Mining in Russia
A great deal of activity has unfolded around the fate of cryptocurrencies in Russia after the Central Bank of Russia released a report on January 20 with a proposal to ban cryptocurrencies and mining in the country. The State Duma and the Ministry of Finance did not support the Central Bank’s initiative. The Ministry of Finance released its concept of the crypto market regulation, which implies strict control of the sphere by the state. The Federation Council is still studying the experience of other countries. At the same time, Anatoly Aksakov, the head of the Chairman of the Committee on Financial Markets of the State Duma, told at the RBC’s crypto-asset conference that the decision on cryptocurrencies in Russia would be made within six months.
Vladimir Putin, the president of Russia, also expressed his position. He urged the government and the Central Bank to come to a consensus on the regulation of digital assets. The president also stressed that Russia has a competitive advantage in mining due to the electricity surplus and the availability of trained personnel. According to Cambridge University, in August 2021, the Russian Federation came in third place in the world in terms of the total computing power of Bitcoin mining.
Note that this is not all the crypto news over the past week. More updates can be found on our website and social networks daily!
