Bitcoin greets 2023 with sluggish BTC price moves amid fresh US inflation warning

View in browser Bitcoin greets 2023 with sluggish BTC price moves amid fresh US inflation warning "Capitulation, represented by net realized losses adjusted for market cap, is on-par with any prior macro Bitcoin bottom. Major pain is being felt in this market." — William Clemente Welcome to the Cointelegraph Markets weekly newsletter, where we look at the influential factors behind Bitcoin price action for the days ahead. As 2023 gets going, there is little by way of relief for Bitcoin and crypto investors so far. The ghost of last year haunts hodlers' wallets, and with volatility nowhere to be seen, many are anxiously awaiting market cues. These will likely need TradFi to return on Jan. 3, as not even the yearly candle close and thinner holiday liquidity managed to induce BTC price volatility. There are nonetheless things to take note of when it comes to the market awakening from its coma — under the hood, things remain precarious for Bitcoin miners, while incoming macroeconomic data from the United States may also give the herd a much-needed call to action. With a distinctly sluggish start to the year underway, Cointelegraph takes a look at key factors to bear in mind when considering what might happen to BTC price next. Continue reading to discover five hot topics of debate in Bitcoin circles this week. Spot price coma continues It may be the dawn of a new year, but for crypto markets, the hangover from 2022 is going nowhere. A lack of volatility remains a key issue as rangebound BTC/USD fails to make up its mind over where to go next. Many traders, however, have made up theirs — a new spate of losses is due in Q1, they say, with targets centering on $12,000. Michael Burry says inflation will return U.S. inflation may be ebbing, but zoning out, Big Short investor Michael Burry says it'll be back with a vengeance. It's all part of the macroeconomic cycles that repeat themselves, he argues, but that may at least provide some comfort to risk asset investors. With that, lessening inflation offers a window of hope for crypto, and expectations remain for the skies — at least temporarily — to clear. The pressure is on for miners A tough start to the year greets Bitcoin miners as the hash rate tumbles and difficulty is set to drop in step. This week's adjustment will see difficulty fall by an estimated 3.5%, erasing its last gains of 2022. More than that, data shows a capitulation-style event for miners is ongoing, this potentially rivaling the worst in Bitcoin's history. BTC supply "getting rare" With hodlers sitting on some serious unrealized losses, it is little wonder that hardly anyone is trading. Data from Glassnode shows that the BTC supply is becoming increasingly dormant in the wake of suppressed volatility. Speculative Bitcoin "tourists," meanwhile, have already been shown to have left the building. Sentiment bound by sluggish price action Bitcoin sentiment is meandering in line with price action — a clear case of "bad but could be worse." According to the Crypto Fear & Greed Index, the overall sense of "fear" among crypto markets is set to stay until volatility hits. There is plenty of room to fall, however, as in 2022, the Index hit rare lows of just 6/100. 3.5 million people follow us on social media: Download our official app: Share to Facebook Share to Twitter Forward email Cointelegraph Copyright © 2022, All rights reserved Mailing contact: Cointelegraph 21 W 46th St, New York, NY 10036-4119 USA You received this email because you signed up on our website.  Want to change how you receive these email? Unsubscribe | Update preferences