Macro Volatility Clouds are Gathering for Bitcoin This Week

Bitcoin started the week above $92,000, but traders are suspicious of the early gains, noting that Asian session pumps often reverse before the traditional trading week begins. Market action is currently characterized by 'liquidity hunts,' where sharp price reversals force out overleveraged positions, according to CryptoQuant analysis. A major volatility cocktail is expected this week, driven by the release of US Consumer Price Index (CPI) and Producer Price Index (PPI) data, geopolitical tensions involving Venezuela and Iran, and a Supreme Court ruling on trade tariffs. Adding to the uncertainty, Federal Reserve Chair Jerome Powell is under a criminal investigation, which he suggested is retaliation for the Fed's interest rate policy, further increasing market tension ahead of the January 28th meeting. Despite short-term confusion, some long-term indicators, like shrinking Bitfinex whale long positions, historically precede price uptrends. However, Fidelity's Jurrien Timmer suggests 2026 could still see a consolidation year ending near $65,000, cautioning against dismissing the possibility of future bear markets.

(Source：Cointelegraph)