Bitcoin has risen 7% to 36% in the first week of January each year since 2018

Some
crypto
market
analysts
are
highlighting
the
potential
for
a
green
first
week
on
the
crypto
markets
in
January
as
part
of
what
economist
and
trader
Alex
Krüger
calls
the
“first
week
of
the
year
effect.”

Krüger
pointed
out
in
a
Dec.
29

tweet

that
for
the
past
four
years
straight,
Bitcoin
(BTC)
has
enjoyed
positive
returns
in
the
first
week
of
January
ranging
from
7%
to
36%
between
2018
and
2021.

In
2021,
BTC
grew
from
$28,653
to
$41,441
in
the
first
week
of
Jan.

When
asked
what
had
happened
in
previous
years,
Krüger

replied
,
“tbf
only
2020
and
2021
matter,
different
markets,
so
do
with
those
two
data
points
as
you
will”.

His
optimistic
outlook
for
early
January
comes
from
his
expectation
of
strong
“fund
inflows,”
which
appears
to
be
in
line
with
the
sentiments
of
Real
Vision
CEO
Raoul
Pal.
Pal
said
in
a
Youtube
interview
on
Dec.
27
that
he
believed
the
sell-offs
on
Bitcoin
were
finished,
and
that

January
would
have
a
strong
start

as
institutional
capital
gets
reinvested
in
the
market.

ExoAlpha
CEO
David
Lifchitz
believes
institutions
are
still
selling
even
with
less
than
24
hours
remaining
in
2021
in
order
to

lock
in
tax
losses
.
It’s
possible
that
a
January
first
week
rebound
could
be
correlated
with
the
phenomenon.

Fintech
and
wealth
management
firm
deVere
Group
CEO
Nigel
Green
believes
that
December
has
shaped
up
as
Bitcoin’s
worst
monthly
showing
since
May
of
2021
due
to
what
he
calls
“panic
sellers
practically
giving
away
their
cryptocurrencies
to
wealthy
buyers.”

He
is
bullish
on
the
largest
cryptocurrency
by
market
cap
for
the
long
term,
however.
Green
feels
that
Bitcoin
can
protect
investors
from
global
inflation,
and
that
“borderless,
global,
decentralized
currencies
are
the
future.”

Not
everyone
is
bullish
on
crypto
in
2022
however.

Professor
of
Finance
at
Sussex
University
Carol
Alexander

told
CNBC

that
BTC
could
tank
as
far
down
as
$10,000
in
2022.
She
is
a
skeptic
however
who
believes
that
BTC
has
no
fundamental
value
and
that
it
has
already
reached
its
peak
this
cycle.



Related:




MicroStrategy
purchases
1,914
Bitcoin,
now
holds
almost
$6B
in
crypto

A
more
informed
take
comes
from
Todd
Lowenstein,
chief
equity
strategist
from
Union
Bank.
His
view
is
that
“Goldilocks
conditions,”
such
as
the
COVID
financial
stimulus
packages
and
low
interest
rates
that
benefited
high
asset
prices,
are
coming
to
an
end
which
will
have
a
significant
negative
impact
on
BTC
and
traditional
markets
in
2022.

“Goldilocks
conditions
are
ending
and
the
liquidity
tide
is
receding
which
will
disproportionately
harm
overvalued
asset
classes
and
speculative
areas
of
the
market
including
cryptocurrencies.”

read original article here