• McGlone, senior commodity strategist expects a bounce in the bitcoin.
• Binance, the world’s largest cryptocurrency exchange wants to expand in Russia and neighboring states.
• According to JPMorgan, The boom-and-bust nature of bitcoin will hinder institutional adoption.

Bitcoin had a quite disappointing year till Jan 25. 2022, However it has 12% partial recovery to $38,100 on Jan. 26. Amidst Hawkish move from Fed weighing on Bitcoin, few other catalysts favors the Bitcoin.

In a tweet on Jan. 25, Mike McGlone who is senior commodity strategist at Bloomberg Intelligence, is eyeing Bitcoin’s position relative to its 20-week moving average, noting that historically, current levels have marked a turning point.

“The fact that Bitcoin is an up-and-coming asset, with less than $1 trillion market cap vs. about $100 trillion of global equities, that got a bit extended may give the crypto an advantage,” he commented. His comments favors the Bitcoin.

Elsewhere, Binance, the world’s largest cryptocurrency exchange, wants to expand in Russia and neighbouring states where it sees prospects for new regulations that will boost its business, an executive said.

Russian politicians have pressed for a change of tack by the central bank, which has proposed restricting cryptocurrency trading and mining because of concerns it may cause financial instability. They say it should instead regulate a business which could draw in more tax revenues.

Moreover, President Vladimir Putin has called for the central bank to find a consensus on how to deal with the cryptocurrency business, which central banks and regulators around the globe have been grappling with.

“Our goal is to obtain a licence and conduct legal business where the regulation allows,” Binance Eastern European Director Gleb Kostarev told Reuters, adding that his company hoped for a progressive regulatory approach from Russia that could influence the approach taken by its neighbours.

On the other hand, Institutions have been slowly warming up to bitcoin because of its uncorrelated returns to equities and other asset classes. But that notion has been challenged in recent sell-offs that occurred in tandem with equity market declines.

“The biggest challenge for bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption,” JPMorgan said.

BTC/USD 4 Hour Chart:

Support: 35424.5 (S1), 34648.9 (S2), 33761.9 (S3).

Resistance: 37087.1 (R1), 37974.1 (R2), 38749.7 (R3).

Amidst all the catalysts, we expect a cautious optimism for bitcoin, we expect a bullish trend for BTC/USD.