Crypto News: What to Expect Amid Plummeting Inflows? – BitRss

There’s a reduction in 30-day capital inflows from a peak of $134 Billion to $58 Billion, a 56.70% decrease. This is correlated with a downward trend in the crypto market’s aggregate net position change and highlights reduced investment volumes. Crypto news cycle does turn bullish for now as a lot of assets see a rebound from their initial bearishness, but can it sustain?

Additionally, the steady supply of USDT ($1.00), suggested that while capital was exiting, stablecoin holdings remained constant, offering liquidity without equivalent reinvestment.

This shift suggested a cooling investor sentiment, possibly anticipating lower market returns or reacting to broader economic signals.

These dynamics underscore a period of cautious or retracting investment in the crypto space, hinting at potential volatility or a reassessment of risk among investors.

Decoding Recent Crypto News: What’s Up for Bitcoin and Altcoins

Bitcoin at $91,550, consolidated in patterns amid global economic pressures such as rising Yields and a strong Dollar. This week, a range-bound movement between $85,372 and $99,993, highlighted key support and resistance levels.

Altcoins may follow Bitcoin‘s lead, potentially facing downward pressure due to decreased capital investment in the crypto market.

Despite expectations in crypto news for a green end to the week, the broader market sentiment could dictate a contrasting close for altcoins, possibly ending in the red. This was due to the investor sentiment being swayed by macroeconomic indicators and USD strength.

Looking at the U.S. Dollar Index (DXY), a strong uptrend closed near 105.5, a key resistance. Recently, it tested the resistance level at 107.3, which historically triggered shifts in market liquidity and investor behavior.

A decisive break above this level could intensify the USD strength, adversely impacting cryptocurrencies as capital flows back to traditional assets.

The current setup, showing the potential to reach targets at 114.7 and 117, forecasts significant implications. In a week where crypto investment is waning, such movements in the DXY could lead to a further decrease in cryptocurrency prices, affecting assets sensitive to USD fluctuations.

Furthermore, Bitcoin and the DXY correlation coefficient peaked at 0.87. Historically, Bitcoin showed inverse movements with the DXY, but recent data suggests a shift, possibly influenced by global economic factors.

As the DXY climbed above 108, Bitcoin’s price oscillated around $92,000, highlighting increased sensitivity to U.S. dollar fluctuations.

Given the downturn in crypto capital investment, this correlation suggests further volatility for Bitcoin and possibly the broader crypto market this week.

Investors might see intensified pressure on crypto assets as the dollar strengthens, indicating a potentially tumultuous period for digital currencies.

Trump’s Administration Cryptocurrency Advisory Council

Finally, the formation of a cryptocurrency advisory council by President-elect Donald Trump’s administration could serve as a bullish signal for the cryptocurrency markets.

With major industry CEOs involved, this council is poised to influence policy significantly, potentially easing regulatory pressures and fostering growth.

As the inauguration approaches, anticipation grows around the establishment of a U.S. strategic bitcoin reserve, further boosting investor confidence.

Despite the current downturn in capital investment, these developments might catalyze a rebound in crypto markets.

Investors should watch for increased activity and possibly a positive shift in market sentiment this week as these factors align to bolster the cryptocurrency landscape.

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