On January 10, Bitcoin (BTC), the world’s largest cryptocurrency, is trading with a bullish bias, heading north toward the $17,500 level. Ethereum‘s (ETH) price, on the other hand, was able to surpass $1,330 this week as the overall cryptocurrency market began to improve.
The crypto market’s recent performance has been encouraging. However, the duration of the upswing remains uncertain as investors await Federal Reserve statements. It will reveal future policies, particularly the magnitude of interest rate increases.
Both bulls and bears are looking forward to the Consumer Price Index (CPI) reading on January 12. Recent drops in the CPI suggest that the Fed’s recent interest rate hikes have had a positive effect on inflation. The CPI data for December 2022 will support the notion that US inflation has peaked.
The cryptocurrency market and BTC/USD are rising because traders expect inflation to go down before the US CPI data comes out. Risky assets may appreciate if the report indicates that inflation is slowing; however, a negative surprise may prompt selling.
Bitcoin is Dramatically Different
Bill Miller III is a fund manager and investor from the United States. He recently confirmed his support for Bitcoin (BTC) and stated it is a different asset. During a live broadcast on CNBC, Miller III compared BTC to other assets that have struggled in the past.
He explained how the BTC network remained operational while the Feds intervened to protect the mainstream market during the COVID-19 crisis. Bill also disputed that BTC collapsed due to the significant price drop from an all-time high (ATH) of $69,045.
He criticized this incorrect analysis and clarified that the mainstream market has only increased by 70% since its low in March 2020. During the same period, the value of bitcoin increased by 190%. As a result, when measured side by side, BTC outperforms.
Bill also cautioned against judging BTC by the standards of defunct exchanges such as FTX and Celsius. He made it clear that centralized organizations like FTX, Celsius, and others are not the same as BTC.
He warned the public not to confuse volatility with value, pointing out that BTC is more volatile than the traditional market. Bill Miller III’s positive comments benefit BTC/USD because he is a well-known investor.
Bitcoin has experienced a minor bearish correction after failing to break above the $17,400 resistance level. It is now gaining immediate support as it approaches the $17,200 goal. A successful breakout of the $17,200 level could propel Bitcoin’s price to the next resistance level of $17,800.