Zinger Key Points
- Crypto trader highlights how Bitcoin could benefit from current macroeconomic conditions while altcoins may struggle.
- Key economic events this week include CPI Inflation, PPI, retail sales data and multiple Fed speaker engagements.
- Get daily trade setups, exclusive stock picks, and real-time alerts today.
Bitcoin BTC/USD faces several key macroeconomic data releases this week, causing heightened volatility in the markets.
What Happened: The Kobeissi Letter pointed to a packed key economic events week which includes the December Producer Price Inflation on Tuesday, Consumer Price Inflation on Wednesday, Retail Sales on Thursday and the Philadelphia Fed Manufacturing Index on Thursday.
Additionally, seven Fed speakers are scheduled, making it a critical week for inflation data and Federal Reserve insights.
Crypto trader Michael van de Poppe speculated about the possibility of a classic “Sell the Rumor, Buy the News” event and questioned whether the catalyst could be PPI, CPI or even the President’s inauguration on Jan. 20.
He noted a significant selloff across altcoins to start the year.
Prominent analyst Alex Krüger observed that that equities often crash overnight into Monday, hitting local bottoms by the U.S. cash open, particularly after a weak prior week.
With CPI data and Trump's inauguration adding uncertainty, he expects heightened volatility.
Also Read: EXCLUSIVE: Answering Key Questions About Bitcoin’s Future 10 Days Before The Inauguration
What's Next: Kevin, a prominent crypto analyst, highlighted that the macro environment, characterized by rising DXY and 10-year Treasury yields, supports Bitcoin dominance as investors seek perceived lower-risk assets.
This dynamic could continue to hinder altcoins, delaying any hope for an altseason.
From a technical perspective, Bitcoin dominance is forming an inverse head-and-shoulders pattern on the 4-hour chart, targeting 59.5% dominance.
The altcoin cycle faces significant risks due to a lack of major monetary policy changes, further deviating from historical patterns.
Chart analyst Ali Martinez pointed out a steep decline in crypto market capital inflows—down 56.7% over the past month, from $134 billion to $58 billion.
This sharp decline in investment activity could serve as a warning to traders.
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