Bitcoin (BTC) stayed above $17,000 on Jan. 10 as risk assets awaited fresh cues on policy from the United States Federal Reserve.
Powell to kick off week of U.S. macro triggers
The pair gained in line with gold early in the week, seeing a slight cool-off as U.S. stocks also lay in wait for potential Fed catalysts.
Fed Chair Jerome Powell was due to speak at a central bank conference on the day, with bulls hoping for a more dovish tone in the wake of several months of declining inflation.
The latest Consumer Price Index (CPI) data covering December 2022 was not due until Jan. 12.
Commenting on short-term BTC price action, Michaël van de Poppe, founder and CEO of trading firm Eight, cautioned on becoming overly optimistic.
“Bitcoin rejecting at crucial area as Powell’s speech is approaching yesterday + simply crucial resistance zone,” he summarized in Jan. 9 tweet.
“Probably sweep towards $17.1K before another bounce towards $17.5K for bearish divergence or we long at $16.9K. Good volatility. Lots of dips on altcoins too.”
Full-time Bitcoin trader George, a popular presence on social media, eyed a potential intraday range with $17,000 as support.
“Think we could be establishing a new range between 17k and 17.6k for the next couple days,” part of an update confirmed.
Elsewhere, there was no sign of relief for the U.S. dollar, as strength continued to deteriorate in a potential boost for crypto. The U.S. Dollar Index (DXY) threatened to challenge 103 as support for a second day running.
GBTC “discount” reverses despite investor pressure
More conspicuous than the modest uptick in BTC spot price was that of the largest Bitcoin institutional investment vehicle.
Related: Why is the crypto market up today?
Beginning Jan. 6, the Grayscale Bitcoin Trust (GBTC) began a marked recovery which saw its share price add 17% over three days.
In so doing, the GBTC discount to net asset value — spot BTC — narrowed to its smallest in several months.
Formerly a premium, the negative “premium” stood at 38.5% on the day, up from record lows of 48.9% on Dec. 13, according to data from Coinglass.
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