Bitcoin Begins the Week on a High Note

Bitcoin (BTC) has kicked off the week in style, achieving a new ten-month high weekly close. Traders are buzzing with excitement and the possibility of a breakthrough against the $30,000 resistance is on everyone’s lips. However, before we break out the champagne, let’s take a moment to gaze at the hurdles ahead.

Gear Up for Macro Data Release

This week is packed with economic data releases, with the Consumer Price Index (CPI) for March dropping on April 12. Historically, these reports trigger more volatility in the crypto markets than a cat on a hot tin roof. Upcoming releases include:

• March CPI inflation data: Wednesday
• Federal Reserve minutes: Wednesday
• March PPI inflation data: Thursday
• Consumer sentiment data: Friday
• Retail sales data: Friday
• Four Fed speakers scheduled this week

As the Fed decides its next move, we’ll be perched on the edge of our seats.

Inflation: The Double-Edged Sword

The expectation is that we’ll see inflation declining, but the Fed is still in a tightening mode. A hawkish stance means any good news regarding inflation could be overshadowed by the Bank’s insistence that interest rate hikes are still on the table. Simply put, don’t count your chickens before they hatch!

Volatility Reigns Supreme

If you’re a fan of volatility, then you’ll definitely have your fill. Bitcoin is distancing itself from traditional equities like the Nasdaq, as its volatility metrics soar while those of stocks cool down. According to a recent analysis:

• Bitcoin’s correlation with gold is now surpassing that of the S&P 500.
• Its inverse relationship with the U.S. dollar is loosening, likely uprooting any sentiments regarding a bearish market.

Bottom line: If it’s whirlwind excitement you’re craving, Bitcoin’s got that in spades!

Ethereum’s Upgrade and Mixed Market Sentiments

As Bitcoin rides high, Ethereum is preparing for its Shanghai upgrade, which is set to unlock approximately $2 billion worth of Ether. This move could introduce unpredictability to the market. Some traders are hedging their bets whether this will create downward pressure or simply shift the landscape around BTC.

Investor Sentiment: Are We Too Greedy?

Current market sentiment is teetering on the edge of greed. Research shows there’s a growing trend of long-term holding by investors akin to the hype before Bitcoin’s lofty $64k days. Santiment reported:

“A rising rate of Bitcoin hodlers is observed as traders prefer to hold on to their assets long-term.”

Is it sustainable? That remains to be seen. But one thing is for sure: with all the excitement buzzing—a cautionary tale from 2021 lingers—’what goes up must come down.’