Bitcoin prices continue to consolidate while the risk is still massively tilted to the downside as the price is consolidating near an important price level of $20K. Investors have been waiting for a strong rally at this level, and consolidation shows a lack of conviction among the BTC bulls. In terms of news flow, there has been more positive news about the Bitcoin's spot ETF, a factor that will heavily involve Wall Street. Rumours are that the SEC is more likely to give the green light for Bitcoin's spot ETF. Suppose such a rumour becomes a reality during a bear market. In that case, it will lift the sentiment among crypto traders as it would show further signs of confidence and adoption among regulators and Wall Street.
Gold
The prices for the precious metal continue to consolidate, but they have not fallen off a cliff as investors and traders are worried about a recession. Traders know that it is only a matter of time before the economic data officially confirms that the US economy has fallen into a recession. That headline would spur more interest in a risk-off asset, gold.
The reason that we do not see a steep sell-off in gold prices isn't only about recession fear about the US economy. Traders are concerned about the European Central Bank's and the Bank of England's policy moves, which are pushed against the corner and have little to no room for monetary policies. Inflation continues to soar, and traders are unsure when inflation readings will peak, let alone return to a normal level.
Gold prices will likely remain volatile this week as several central bankers, such as Fed Chairman Jerome Powell and ECB President, Christine Lagarde, are speaking at the annual forum in Sintra.