Fundamental view:
Bitcoin initially rallied against the greenback but later gave up some of its gains, However it managed to form a bullish weekly candle. The US dollar bulls was favored by the stronger than expected CPI data. The US reported the January Consumer Price Index, which soared to 7.5% YoY against the forecast of 7.2%,and the jump was the highest level since February 1982. This made the market rush to priced a 50 bps rate hike in March.
On the other hand, Recent news of bill passed by Canada favoring crypto and Billionaire Bill Miller views on Bitcoin seems to underpin the uptrend of Oldest crypto – Bitcoin. A bill has been introduced in Canada to encourage the growth of the crypto sector. “Canada should be attracting billions of dollars in investment in the fast growing crypto asset industry. Today I introduced a bill, the first of its kind in Canada, to make sure this becomes a reality,” said the parliament member who introduced the bill. Veteran investor and fund manager Bill Miller says he has “a very big position” in bitcoin and expects to see a lot of institutional adoption this year, particularly among endowments and foundations. “Bitcoin is insurance against financial catastrophe,” he opined.
The major economic events deciding the movements of the pair in the next week are NY Fed Empire State Manufacturing Index at Feb 15, Retail Sales monthly report, EIA Crude Oil Stocks Change, FOMC Minutes at Feb 16, Initial Jobless Claims, Philadelphia Fed Manufacturing Index at Feb 17, Existing Home Sales at Feb 18 for US.
BTC/USD Weekly outlook: