Bitcoin (BTC) has begun trading around $17,000 this week following a major spike in value from events in the United States in early January.
Trading data showed the figures with the exchanges showing flash volatility due to a US economic data report from the Bureau of Labour Statistics (BLS).
This has revealed the largest rebound for the cryptocurrency since 20 December.
At the time, the BLS reported an increase of 223,000 jobs, despite interest rates tightening at the Federal Reserve. Despite the optimistic numbers, wage growth slowed to its lowest point in roughly two years.
According to TradingView’s one-day candle chart, Bitcoin fell from $17,800 USD to settle at $16,923.
A Consumer Price Index (CPI) report below 7 percent would indicate a faster drop in inflation rates, leading to monthly highs of around $19,00 according to Satoshi Flipper.
On-Chain Data Woes
Glassnode, an on-chain analytics firm, also unveiled difficulties across Bitcoin that showed a decreasing realised cap. This shows aggregate prices at the last movement of Bitcoin supply, indicating losses from BTC sales.
Checkmate, the company’s top on-chain commentator, said in a tweet,
“The 2022-23 Bitcoin Bear Market has seen the Realized cap drawdown by -18.8%, the second largest in history, and eclipsed only by the pico-bottom of the 2011 bear. Investors have weathered a total of $88 Billion in Net Realized losses.”
