Bitcoin price holds $17,000 in Fed Powell speech as GBTC hits multi-month highs

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Bitcoin (BTC) remained above $17,000 on Jan. 10 as risky assets awaited further clues on US Federal Reserve policy.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingViewPowell will launch a week of macro triggers in the United States

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD consolidating after hitting $17,396 on Bitstamp the day before its highest level since December 16.

The pair gained in line with gold at the start of the week, experiencing a slight slowdown as US equities also awaited potential catalysts from the Fed.

Fed Chairman Jerome Powell was due to speak at a central bank conference that day, with bulls hoping for a more dovish tone after several months of falling inflation.

However, the latest consumer price index (CPI) data covering December 2022 was not expected until January 12.

Commenting on the short-term price action of BTC, Michal van de Poppe, founder and CEO of trading company Eight, cautioned against getting too optimistic.

Bitcoin Rejected in Crucial Zone as Powell’s Speech Approaches Yesterday + Simply Crucial Resistance Zone, he summarized on January 9.

Likely sweep towards $17.1K before another bounce towards $17.5K for a bearish divergence or we long at $16.9K. Good volatility. Lots of declines on altcoins too. BTC/USD annotated chart. Source: Michal van de Poppe/Twitter

Full-time Bitcoin trader George, a popular social media presence, was meanwhile eyeing a potential intraday range with $17,000 as support.

I think we might establish a new range between 17k and 17.6k for the next few days, part of a confirmed update.

Vote now

Elsewhere, there were no signs of relief for the US Dollar as strength continued to deteriorate in a potential boost for the crypto. The US Dollar Index (DXY) threatened to challenge 103 as support for a second straight day.

US Dollar Index (DXY) 1 hour candle chart. Source: TradingViewGBTC “discount” reverses despite investor pressure

More visible than the modest rise in the spot price of BTC was that of the largest institutional investment vehicle Bitcoin.

Related: Why Is The Crypto Market Up Today?

Beginning January 6, the Grayscale Bitcoin Trust (GBTC) began a sharp rally that saw its share price rise 17% over three days.

In doing so, the GBTC discount to BTC spot NAV narrowed to multi-month lows.

Formerly a premium, the negative premium stood at 38.5% on the day, from a record low of 48.9% on Dec. 13, according to data from Coinglass.

Grayscale’s parent company, Digital Currency Group (DGC), continued to face criticism amid a concerted effort by investors to regain access to their money.

GBTC premium to assets held versus BTC/USD chart. Source: Coinglass

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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