Bitcoin (BTC) pushed liquidity to new lows on January 7 as 2022 continued to show dull price action.

1 hour light chart BTC / USD (bit print). Source: TradingView
Trader: Bitcoin Should Close Above $ 42 400
Data from Cointelegraph Markets Pro and TradingView showed BTC / USD hit its lowest level overnight since September, reaching $ 40,938 on Bitstamp.

Initially, the pair jumped to $ 42,000, but then resumed its decline, breaking the limit seen in the December series of liquidations.

Among traders, the discussion focused on a similar incident that happened, with targets even falling below the September low of $ 30K.

“It could also be down from liquidation week during September lows,” popular Twitter trader Crypto Ed warned in its latest forecast.

At the daily level, Bitcoin also threatened to disappoint trader Anbessa on the daily time frames.

Commentators have argued that there are significant odds against bitcoin and cryptocurrencies, and that the headwind is caused, among other things, by events in Kazakhstan, where an estimated 18% of bitcoin hashrate is located.

After spreading across the country this week, hash rate estimates are starting to show a sharp drop of about 20 exahashes per second (EH / s) from the previous record of 192 EH / s, leading to the emigration of Chinese miners last year. …

BRRR Money printer not working
In the future, other companies have also remained in line with the expectations of the cryptocurrency market thanks to macroeconomic policies.

Related: Bitcoin Monthly RSI Lowest Since September 2020, New Oversold Signal

Among them was Arthur Hayes, the former CEO of the BitMEX derivatives exchange, who pointed to the Federal Reserve’s plans to raise interest rates and cut asset purchases, which worsen the constraint for holders of risky assets.

A recently published blog says that easy money is running out.

“Given the law of large numbers, simply resuming a previous asset buying trend will not cause a sudden and dramatic acceleration in money supply growth. So while risky assets, including cryptocurrencies, will delight you, at best it will, ”he said. Assets are growing slowly compared to previous records.

“Even if it did, the only way cryptocurrency markets would move would be if the Fed publicly turned on the taps and then the securities spilled over into cryptocurrency.”
It is not yet known when the Fed will raise interest rates, but the reduction in purchases has already begun.

Source: CoinTelegraph

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