TechFlow News, January 30: Matrixport published an analysis stating, “From on-chain data and technical indicators, Bitcoin remains in a bearish environment—the most direct signal being its price still trading below the 21-week moving average. Additionally, U.S. midterm election years typically coincide with heightened policy uncertainty and volatile risk appetite; this timeframe also overlaps with Bitcoin’s typical four-year cycle phase, during which prices have historically tended to weaken. Nevertheless, we maintain a relatively positive outlook toward overall risk assets.
The reflation narrative remains intact, and the U.S. dollar continues to trade in a relatively weak range. To hedge against the pressure of declining purchasing power, dollar-denominated capital generally maintains a relatively high allocation to risk assets. Recently, Trump has neither issued clear supportive signals nor made strong statements regarding the dollar’s weakness, leading markets to interpret this as increased tolerance for further dollar depreciation. Coupled with some international capital increasing allocations to non-U.S. assets and reducing concentration in U.S. assets, the reflation trade may continue to find support in the near term.”
