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Blockworks 2025-01-15 14:25:07

Price action ahead of the inauguration is ‘rigged for unpredictability:’ K33

This is a segment from the Empire newsletter. To read full editions, subscribe . Yesterday I touched on the markets, but today I want to take a deeper dive ahead of the inauguration. Good news is that there’s some positive data supporting the thesis that bitcoin could be in for positive momentum after Jan. 20. K33 analysts noted that trading volumes are up 51% this past week, with average daily volumes coming in at $4.3 billion. “Activity levels were exceptionally high amidst [Monday’s] massive flush and recovery, with spot market volumes reaching $6.5 billion, the highest daily spot volume since Dec. 20. The high volume and sharp recovery suggest many willing buyers amidst BTC’s push below $90,000, a promising observation for the road ahead,” they said. Now I’m going to offer up the next bit of data without much explanation because I’m not sure we can really explain it outside of theorizing. K33 noted that Jan. 13 was the most volatile day since early December, where the gap between daily returns and intraday volatility was the “highest ever recorded in BTC.” The easiest explanation is potential profit taking, perhaps to prepare for tax season . This leads me to this interesting nugget: “prices saw another peculiar pattern over the last week, with 14 consistent green hourly candles in a row for the first time in BTC history, making the past week unique through several lenses.” From K33’s market report All of this could mean that Jan. 20 isn’t a sell-the-news event after all, which was a previous possibility. Back in early December, K33 analyst Vetle Lunde thought we could see bitcoin peak on Jan. 17 , ahead of the inauguration, which would set it up for selling pressure as President-elect Donald Trump once again takes the oath of office. But, to no one’s surprise, bitcoin marches to the beat of its own drum and a lot of what I’ve written and talked about for the past month no longer matters. Don’t worry, I won’t take it personally. The current setup, K33 noted, is “rigged for unpredictability” which means we all might be in for a bumpy ride over the next few days. “The overall sensitivity to interest rates over the past month suggests increased importance of Wednesday’s CPI print. Additionally, notable Trump momentum may still form in the days leading into the inauguration. At current levels, we’ve rescinded our plan to sell the inauguration. However, given the plan’s price-dependent nature, a tactical de-risking could regain appeal if prices push meaningfully higher running into the inauguration,” analysts wrote. We’re not out of the woods yet, and we should all be wary. But, hey, at least it doesn’t seem like we’re peaking yet…right? Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter . Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter . Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more. The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

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