“Shorters will get rekt” at $40,700
The behavior, while uninspiring for some, firmly reminded others of Bitcoin price behavior at the end of September, when $40,700 acted as a springboard which ultimately produced $69,000 all-time highs seven weeks later.
— Pentoshi DM’S ARE SCAMS (@Pentosh1) January 8, 2022
Macro commentaries regarding stricter economic policy from the United States Federal Reserve meanwhile continued.
As last week, concerns focused on crypto markets’ ability to thrive in an atmosphere without the extent of “easy money” availability, which has characterized the economy since March 2020.
“Crypto diehards about to find out if it really was bubble: Rock-bottom rates & trillions of dollars in CenBank money & govt stimmy helped turbocharge prices of digital assets,” markets pundit Holger Zschaepitz argued in a recent Twitter post.
“Can mkt hold up w/o them? Bitcoin on course $40k w/flat CenBank balance sheets.”
What difference a year makes
Further similarities came in the form of BTC/USD exactly matching its position from the same day one year ago Saturday. A key difference, however, lay in sentiment.
On January 8, 2021, the Crypto Fear & Greed Index stood at 93/100, flashing a warning that a local top should soon arrive and that the market had entered “extreme greed.”
By contrast, this Saturday scored just 10/100 — one of the Index’s lowest-ever readings deep within “extreme fear” territory.