It’s been a particularly bearish start to the year for Bitcoin (BTC) and the broader market. With bullish BTC price predictions for 2022 making the news early in the year, the New Year’s Day rally provided hope.
1St However, the January rally was out as he was active on 1St A week out of the year on the news front.
The markets were hit by a marked increase in regulatory rhetoric and activity along with the Fed’s monetary policy early in the year.
On Wednesday, the Federal Reserve released the FOMC meeting minutes from the December meeting. In an effort to catch markets by surprise, committee members spoke of the need to raise interest rates sooner to curb inflation. There was also talk of the need to start shrinking the balance sheet.
Bitcoin (BTC) is down 2.7% in the first hour of the release of the FOMC meeting minutes. On the day, Bitcoin (BTC) ended the day down 5.19% and things weren’t much better elsewhere.
Ripple’s XRP is down 5.92%, Litecoin (LTC) and Ethereum (ETH) saw losses of 7.59% and 6.50% respectively on Wednesday.
Ahead of the FOMC meeting minutes that caused market buzz, conversations and regulatory activity also tested support for the crypto market.
At the turn of the year, news hit the Indian tax authorities wires searching 6 exchanges on suspicion of tax evasion. There was also news of a US Congressional subcommittee preparing to hold a hearing on the environmental impact of crypto mining.
All this, along with talk of a global regulatory framework and the SEC’s lawsuit against Ripple Lab, led to early pressure.
Bitcoin price action
On Friday, Bitcoin (BTC) dropped 3.61% to end the day at $41,548. It was 6y Consecutive day in red and left Bitcoin (BTC) is down 10% for the first 7 days of the year. The early pullback was in stark contrast to the first week of 2021, when Bitcoin (BTC) surged 36%.
The key during the Friday session was to avoid a return to the sub-$40,000 levels. Finding support at $40,500, Bitcoin (BTC) ended the day at $41,000 levels.
Having seen the red for 6 consecutive days, avoiding a return to Friday’s low of $40,750 would be key. For the bulls, a return across Friday’s high at $43,136 will be needed to avoid further losses.
At the time of writing, Bitcoin (BTC) is down 0.61% to $41,799.
in another place
Ethereum (ETH) fell 6.08% to lead the way on Friday. However, the deviation from the trend at the beginning of the year was Chainlink (LINK). After gaining 1.85% on Friday, Chainlink (LINK) is up 33% year-to-date. News of a $4.6 million Ethereum whale purchase from LINK contributed to the rally. Chainlink’s (LINK) decentralized network continues to attract interest, contributing to this week’s gains.
At the time of writing, Chainlink (LINK) is up 1.31% to $26.29. A breakout from Wednesday’s high of $27.45 will trigger the $30 levels, which last occurred in mid-November. However, a pullback below $20 would test support at the December low of $15.38.