empty
05.01.2022 05:17 PM
Rising US dollar inflation accounts for bitcoin's value

Bitcoin's main value in 2021 has been officially recognized as its ability to protect assets from inflationary losses. The trend will probably continue in 2022. This fact is indicated by the ratio of USD to BTC inflation, as well as Ethereum co-founder Vitalik Buterin's statement.

The institutional market changed its attitude to bitcoin due to the acceleration of the US economic stimulus program tapering. It caused a change in priorities of big capital, which began to withdraw funds from BTC and invest them in less risky financial instruments. It was the reason why the S&P 500 Index has renewed its historical high. However, bitcoin is dominating in 2022 due to the cryptocurrency's historic low in inflation.

This image is no longer relevant

Bitcoin and US dollar inflation

Approximately 90% of all bitcoin issuance is carried out by holders. Moreover, the asset's inflation index has fallen to 1.8%. The US dollar ended 2021, hitting a local high of 6.8%. CoinMetrics research shows that the US dollar inflation rate is 3.7 times higher than that of BTC. This is the first strong argument that this property will allow bitcoin to remain the top 1 cryptocurrency in 2022.

This image is no longer relevant

Ethereum is still weak

Bitcoin's closest rival, Ethereum, is approaching Protocol 2.0. The project's co-founder, Vitalik Buterin revealed this fact. This indicates that altcoin is not capable of competing with bitcoin in protecting against inflation. Notably, at the beginning of September algorithms to burn ETH made the cryptocommunity discuss the emergence of a main rival to BTC for risk hedging. It is likely to happen in the future. However, the major altcoin has no chance of poaching bitcoin's institutional audience in the near term.

Consequently, major investors have resumed their period of accumulation and bitcoin's third-largest whale has acquired 5,529 BTC during the last month. CryptoQuant data indicates a massive outflow of coins from the stock exchange. In late December, this process was interrupted during a massive profit taking. Considering these factors, I assume bitcoin is moving in the May 2021 scenario. As of January 5, the asset is halfway through its consolidation and accumulation phase. When balances on stock exchanges reach new lows and major buyers start to take action, BTC will start moving to new highs.

This image is no longer relevant

Bitcoin in January

Despite positive aspects, bitcoin's daily chart is not promising. A further trend pattern inverted cup and handle has been formed on the daily chart. Since the trend is upward at the moment, this pattern should be considered bullish. According to this formation of the technical analysis, the potential of price movement reaches a level of $85k. Taking this aspect into account, the situation is getting more bullish. Therefore, a reversal and fixation above $48,000 are likely. However, the formation is irrelevant in case the price breaks the previous local low of $42,000. In this case, the analysis will require revision and the long-term bullish trend will be broken. The main bitcoin's target for January will be a breakout of the mid-term downtrend line at $52,000. In the longer term, I support Goldman Sachs view and expect bitcoin to be around $100,000 by the end of 2022.

This image is no longer relevant

Seleccione el marco de tiempo
5
min
15
min
30
min
1
hora
4
horas
1
día
1
s.
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

Análisis del par BTC/USD. El 15 de abril. El Bitcoin atrae a una trampa

El conteo de ondas del gráfico de 4 horas para el par BTC/USD es completamente claro. Después de completar una fase alcista compuesta por cinco ondas completas, comenzó la formación

Chin Zhao 08:06 2025-04-15 UTC+2

Recomendaciones para operar con el Bitcoin para el 15 de abril según el sistema ICT.

El Bitcoin se está recuperando, pero su potencial de crecimiento es limitado. Últimamente ha habido pocas noticias del mundo de las criptomonedas, y Donald Trump continúa imponiendo sanciones, aranceles

Paolo Greco 07:13 2025-04-15 UTC+2

Recomendaciones de trading en el mercado de criptomonedas para el 14 de abril

El Bitcoin y el Ether mostraron una estabilidad bastante buena durante el fin de semana, preservando las posibilidades de una mayor recuperación. Y aunque desde un punto de vista técnico

Miroslaw Bawulski 09:17 2025-04-14 UTC+2

El Bitcoin lo está haciendo relativamente bien. Ether lo está haciendo ligeramente peor

El Bitcoin y el Ether han estado en demanda durante los últimos días de negociación, manteniendo sus posibilidades de recuperarse de la venta masiva vista la semana pasada debido

Jakub Novak 08:41 2025-04-14 UTC+2

Análisis del par BTC/USD. El 10 de abril. El Bitcoin sigue equilibrándose

El conteo de ondas en el gráfico de 4 horas para el instrumento BTC/USD es completamente claro. Tras la finalización del tramo alcista de la tendencia, compuesto por cinco ondas

Chin Zhao 07:34 2025-04-10 UTC+2

Recomendaciones para operar con el Bitcoin para el 10 de abril según el sistema ICT.

El Bitcoin vuelve a recuperarse rápidamente y Donald Trump sigue agitando los mercados. Solo en el día de ayer se recibió tal cantidad de noticias sobre la Guerra Comercial Mundial

Paolo Greco 07:34 2025-04-10 UTC+2

El Bitcoin está bajo presión: por qué ni siquiera un rebote salva a los toros

El tipo de cambio cae, los fondos pierden activos y los analistas no ven motivos para una subida. ¿Qué le está pasando al líder del mercado de criptomonedas y cómo

Ekaterina Kiseleva 11:20 2025-04-09 UTC+2

Otro desplome del mercado de criptomonedas

Otro desplome en los mercados bursátiles también afectó al mercado de criptomonedas. Los inversores, temiendo una caída aún mayor, comenzaron a deshacerse masivamente de los activos digitales, lo que provocó

Jakub Novak 09:13 2025-04-09 UTC+2

Recomendaciones para operar en el mercado de criptomonedas el 8 de abril

El Bitcoin y el Ethereum se están recuperando gradualmente después de la fuerte venta masiva que ocurrió a principios de esta semana. La situación en el mercado bursátil estadounidense

Miroslaw Bawulski 08:52 2025-04-08 UTC+2

El Bitcoin demuestra resiliencia

A pesar de todos los problemas que enfrenta actualmente el mercado de las criptomonedas, el Bitcoin demuestra resiliencia, lo cual se confirma por su dominio sobre otros activos criptográficos, incluido

Jakub Novak 08:52 2025-04-08 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.