Bitcoin (BTC) starts a new week with $30,000 intact and a message of support from the world’s richest man — what can we expect next?
As trading resumes around the world, the largest cryptocurrency is still lacking decisive momentum up or down.
Cointelegraph takes a look at five factors which could play a part in shaping Bitcoin price trajectory in the coming days.
Stocks wary of “Reddit raiders”
Equities began Monday with volatile behavior after seeing their worst performance since October last week.
In what is likely to become a continued narrative, markets are still feeling the impact of a retail investor revolt which turned sour after regulators and trading platforms stepped in to stop them from participating.
While involving United States companies, the knock-on effects have been felt around the global economy, with Asia likewise seeing pressure before a Monday rebound.
Nonetheless, a repeat of last week’s mayhem could weaken an already shaky stocks environment, analysts warn.
“We think that the vulnerabilities are there, and while we do not know precisely which catalysts might emerge or their exact timing (including some of the recent retail-oriented pushes against heavily shorted stocks), we suspect that they would derail the current rally and provide entry points that may be 10% lower,” Tobias Levkovich, chief U.S. equity strategist at Citigroup, wrote in a note to clients quoted by CNBC on Sunday.
The timing of the retail move could hardly have been more apt, coming as many stocks indexes see all-time highs despite restrictions on daily life and economic activity increasingly across the U.S. and the western world due to coronavirus.
A separate thorn in the side of U.S. policy comes in the form of continued disagreement over the size of a fresh economic stimulus package. New President Joe Biden’s $1.9 trillion plans have been challenged, and Republicans are instead offering a package worth $600 billion — almost 70% less.
Ammous warns over “shitcoin” silver
With global consciousness waking up to the disparities between how those restrictions affect the rich and the poor, investors’ appetite for a wake-up call seems little dented despite warnings from authorities.
This time, however, it seems not more stocks are on their radar, but precious metal silver. In Monday trading, silver hit its highest levels since 2012 at nearly $29 per ounce.
Gains have been brisk, with 15% added in the past four days alone — since the retail stocks frenzy took a turn for the worse.
Silver soars past $30 a troy ounce as Reddit-fuelled buying frenzy continues for 3rd day. #Silversqueeze pic.twitter.com/mLmasUBrq1
— Holger Zschaepitz (@Schuldensuehner) February 1, 2021
Unsurprisingly, the phenomenon has been accompanied by a slew of calls for those investors to abandon relatively lackluster silver and instead pile into Bitcoin.
“REMINDER… SILVER IS A…
Read more:Elon Musk, Bitcoin and the Reddit raiders: 6 things to watch for BTC price this week
