BTC is experiencing some choppy price action around $50K as bears and bulls fight to gain control over its short-term trajectory. The digital coin remained stuck in a range between $48,000 and $51,000 during the Asian trading hours and hasn’t shown any signs of staging a clear breakout.
This price movement indicates that the BTC market is in a bias-conflict. The turbulent intra-day trading comes as investors attempt to measure the king coin’s short-term sentiment before the US government releases some much-anticipated data on the economy’s growth.
At 0830 am ET, US officials are expected to release an early projection for the US gross domestic product for Q4 of the year. That economic data will offer crucial insights on whether crypto investors should stay exposed to BTC in the coming months.
At the time of writing, BTCUSD is down 0.17% to trade for $49,469.
BTCUSD Chart by TradingView
BTC Could Benefit from Anti-Fiat Narrative
Bitcoin has been one of the best-performing assets during the Covid-19 pandemic, with gains of about 1,200% since March of last year. The surge in value has been primarily buoyed by an aggressive fiscal response from the Federal Reserve, which continues to flood the economy with trillions of dollars.
This unprecedented monetary policy has cemented bitcoin’s position as an inflation hedge. Many investors now view the flagship cryptocurrency as a safe haven asset that can shield them from mounting global inflation.
The Fed Chairman Jerome Powell’s testimony before Congress over the past two days pointed to a broader fiscal response to boost the economy. Powell confirmed that the central bank would continue buying corporate securities and bonds at the rate of $120 bn per month.
Further inflation warnings stem from President Biden’s administration plan to table its $1.9 trillion stimulus package in Congress on Friday, a move that would stress the US dollar lower.
Rising inflation could help BTC prices surge even higher owing to its anti-fiat narrative and increased institutional adoption.
ETH Price is Facing Resistance
Ethereum has been recovering from the recent crypto market bloodbath and has formed a decent support base above $1,500. In today’s sessions, the ETH price recovered above $1,650 as buyers came back into the market.
The ETHUSD pair even spiked above $1,700 and formed a high near $1,720. However, the bulls failed to gain strength amid heavy resistance at this level, resulting in a correction below the $1600 level.
ETHUSD Chart By TradingView