- A crypto analyst has cited an inverse correlation between Gold and Bitcoin.
- The Japanese 40-year government bond yield has reached a record high.
- Fallouts from Davos and Japan’s central bank could trigger volatility in Bitcoin’s price.
Cryptocurrency analyst Michael van de Poppe, in his latest post, has identified a trend that could lead to a volatile period for the cryptocurrency market.
Notably, there is a classic contrast in trends between Gold and Bitcoin over the past few days. Gold has surged significantly, with the price climbing above $4,730 as of Tuesday. Gold’s latest price rally is a continuation of its upward trend from the final quarter of last year, a period when Bitcoin entered into bearish pressure.
Besides Gold, Van der Poppe noted a surge in the Japanese Yield. According to reports, the Japanese 40-year government bond yield reached a record high. Comparing these metrics with developments in Bitcoin’s ecosystem, the crypto analyst predicted upcoming volatility for the cryptocurrency in the current week.
Van de Poppe identified two major events: the ongoing World Economic Forum (WEF) being held in Davos, Switzerland, and the expected monetary decisions from the Japanese central bank. The analyst believes these events could have a significant effect on the cryptocurrency’s price.
The Dynamics Surrounding Bitcoin’s Price
Bitcoin has experienced severe bearish pressure over the past week, making a classic turnaround after an impressive short-term rally. The cryptocurrency changed paths after rallying approximately 10% in just a few days. As of the time of writing, Bitcoin has given up the gains from the latest rally, returning to a local support around the $91,000 price region.
Despite the latest pullback, many analysts expect the pioneer cryptocurrency to maintain its bullish narrative by reversing the current situation. Crucial decisions emanating from Davos and the outcome of the Japanese central bank’s monetary decision could be significant in supporting Bitcoin’s bullish narrative. However, several other factors, including the increasing demand from institutional investors, could boost the expected bullish resurgence.
Related Articles: End of “Free Money”: Rising Japanese Yields Threaten Global Markets and Crypto
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