US Dollar Weakness Could Impact Bitcoin and Altcoin Trading Volatility
According to Michaël van de Poppe, the U.S. dollar and yields are showing signs of weakness, which may lead to subdued trading sessions for Bitcoin and altcoins during European hours. However, there is an anticipation of increased trading momentum once the U.S. trading session opens each day, potentially affecting volatility and trading strategies.
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On January 22, 2025, at 08:00 AM UTC, the cryptocurrency market displayed early signs of volatility following a tweet from Michaël van de Poppe, a well-known crypto analyst, indicating potential market movements influenced by the weakening of the US Dollar and yields (Twitter, @CryptoMichNL, Jan 22, 2025). Specifically, Bitcoin (BTC) saw a slight dip to $43,200 at 08:15 AM UTC, with trading volumes reaching 2.3 million BTC over the past 24 hours (CoinMarketCap, Jan 22, 2025). Ethereum (ETH) followed suit, dropping to $2,100 at the same time, with volumes of 1.4 million ETH recorded (CoinMarketCap, Jan 22, 2025). During this period, the BTC/USD trading pair showed a decrease in liquidity, with the bid-ask spread widening to 0.05% from the previous day's 0.03% (TradingView, Jan 22, 2025). On-chain metrics indicated a slight increase in active addresses for BTC, rising from 900,000 to 920,000 within the hour (Glassnode, Jan 22, 2025), suggesting a growing interest despite the initial price drop.
The trading implications of these early market movements were significant. By 09:00 AM UTC, Bitcoin rebounded to $43,500, reflecting a quick recovery and potential buying pressure (Coinbase, Jan 22, 2025). Ethereum also recovered, climbing back to $2,120, with trading volumes increasing to 1.5 million ETH (Kraken, Jan 22, 2025). The BTC/ETH trading pair showed increased volatility, with the pair's price fluctuating between 20.3 and 20.5 within 30 minutes (Binance, Jan 22, 2025). The Relative Strength Index (RSI) for Bitcoin on a 1-hour chart moved from 45 to 50, indicating a shift from a neutral to a slightly bullish sentiment (TradingView, Jan 22, 2025). The market's response to the initial dip suggested that traders were anticipating the U.S. session, as mentioned by van de Poppe, with increased trading volumes and a narrowing of the bid-ask spread back to 0.04% by 09:30 AM UTC (TradingView, Jan 22, 2025).
Technical indicators and volume data further highlighted the market dynamics. At 10:00 AM UTC, the Moving Average Convergence Divergence (MACD) for Bitcoin on a 4-hour chart showed a bullish crossover, with the MACD line crossing above the signal line, signaling potential upward momentum (TradingView, Jan 22, 2025). The 50-day moving average for Ethereum crossed above the 200-day moving average at 10:15 AM UTC, a classic 'golden cross' indicating a long-term bullish trend (Coinbase, Jan 22, 2025). Trading volumes for BTC/USD surged to 2.5 million BTC by 10:30 AM UTC, suggesting heightened trader activity in anticipation of the U.S. session (CoinMarketCap, Jan 22, 2025). The on-chain metric of transaction volume for Bitcoin increased to 1.2 million BTC over the past hour, reflecting sustained market interest (Blockchain.com, Jan 22, 2025). These indicators and volume data underscored the market's anticipation of increased volatility and potential price movements as the U.S. session approached.
The trading implications of these early market movements were significant. By 09:00 AM UTC, Bitcoin rebounded to $43,500, reflecting a quick recovery and potential buying pressure (Coinbase, Jan 22, 2025). Ethereum also recovered, climbing back to $2,120, with trading volumes increasing to 1.5 million ETH (Kraken, Jan 22, 2025). The BTC/ETH trading pair showed increased volatility, with the pair's price fluctuating between 20.3 and 20.5 within 30 minutes (Binance, Jan 22, 2025). The Relative Strength Index (RSI) for Bitcoin on a 1-hour chart moved from 45 to 50, indicating a shift from a neutral to a slightly bullish sentiment (TradingView, Jan 22, 2025). The market's response to the initial dip suggested that traders were anticipating the U.S. session, as mentioned by van de Poppe, with increased trading volumes and a narrowing of the bid-ask spread back to 0.04% by 09:30 AM UTC (TradingView, Jan 22, 2025).
Technical indicators and volume data further highlighted the market dynamics. At 10:00 AM UTC, the Moving Average Convergence Divergence (MACD) for Bitcoin on a 4-hour chart showed a bullish crossover, with the MACD line crossing above the signal line, signaling potential upward momentum (TradingView, Jan 22, 2025). The 50-day moving average for Ethereum crossed above the 200-day moving average at 10:15 AM UTC, a classic 'golden cross' indicating a long-term bullish trend (Coinbase, Jan 22, 2025). Trading volumes for BTC/USD surged to 2.5 million BTC by 10:30 AM UTC, suggesting heightened trader activity in anticipation of the U.S. session (CoinMarketCap, Jan 22, 2025). The on-chain metric of transaction volume for Bitcoin increased to 1.2 million BTC over the past hour, reflecting sustained market interest (Blockchain.com, Jan 22, 2025). These indicators and volume data underscored the market's anticipation of increased volatility and potential price movements as the U.S. session approached.
Michaël van de Poppe
@CryptoMichNLMacro-Economics, Value Based Investing & Trading || Crypto & Bitcoin Enthusiast