Bitcoin
US Economic Data to Watch: Bitcoin Volatility Expected
Crypto market participants have a lot to look forward to this week, with 5 US economic data due for release starting Tuesday. The market is already abuzz, anticipating the implication of these events on Bitcoin (BTC) and crypto markets in general.
The influence of US macro data on Bitcoin continues to remain apparent after a period of dissipated or dried-up effect in 2023.
Consumer Confidence
The first US economic event with crypto implications this week is the consumer confidence survey on Tuesday, January 28. This survey reflects likely spending trends, showcasing consumer attitudes, buying intentions, and vacation plans, among other things.
There is a median forecast of 106.3 after the previous 104.7. Enhanced consumer confidence would suggest that people are open to spending more money, hence increasing economic activity. This would potentially drive more investments into cryptocurrencies like Bitcoin.
Conversely, a pullback in consumer confidence could lead to decreased spending and investment. It would support a more dovish path for the Federal Reserve (Fed), leading to increased liquidity in the financial system.
This may be favorable for Bitcoin as investors seek alternative stores of value and hedges against inflation. Therefore, the Tuesday data will be important for crypto markets, measuring how optimistic or pessimistic consumers are about the overall state of the economy.
FOMC and Fed Chair’s Speech
Beyond consumer confidence, crypto markets are also watching the Federal Open Market Committee (FOMC) interest rate decision on Wednesday, January 29. It marks the first FOMC decision after President Donald Trump took office, making it an interesting watch.
“Trump is demanding rate cuts, but Powell’s signaling no change. This showdown could rock the markets,” crypto trader Roger Smith quipped.
Policymakers recently expressed concerns about inflationary pressures, particularly tied to Trump’s proposed fiscal policies. During their last meeting, FOMC minutes provided little indication of a potential rate cut in the near term, further solidifying the Fed’s hawkish stance. As BeInCrypto reported, this stance exerted downward pressure on risk assets, including cryptocurrencies.
Against this backdrop, the CME FedWatch tool shows a 99.5% probability of a 25-basis-point (0.5% bps) rate cut. As this would signify a no rate change, the focus will be on the press conference with Fed Chair Jerome Powell. With these, traders and investors are expecting higher volatility amid market-moving insights from the Fed chair.
“I’ll decide that after Wednesday, January 29, 2024, FOMC interest-rate decision 2:00 pm ET – Fed Chair Powell press conference 2:30 pm ET. No position at the moment but I see a small chance for positive,” one trader said.
Noteworthy, the Fed has a dual mandate — to keep the Consumer Price Index (CPI), a measure of inflation, increasing by 2% per year and to maintain full employment in the economy.
GDP
The US GDP (Gross Domestic Data) report will be out on Thursday, January 30, adding to the list of US economic data to watch this week. The median forecast is 2.5% after the previous reading of 3.1%. This data measures the total value of goods and services produced in a country.
A positive GDP revision could signal a strong and growing economy. This would prompt investors to allocate more capital towards riskier assets such as Bitcoin and cryptocurrencies. Conversely, a downward revision may lead to a shift in investor sentiment, resulting in a temporary decline in crypto prices.
Initial Jobless Claims
Crypto markets will also be keen on the initial jobless claims report on Thursday, which will provide insight into the health of the US labor market. Notably, the number of Americans filing new applications for unemployment benefits recently ticked up. However, it appeared to be steadying near a level consistent with a gradual cooling of the labor market. This is what set the stage for the Fed’s openness to rate cuts.
The previous data came in at 223,000, with a current middle projection of 225,000. A higher-than-expected number of jobless claims could indicate economic instability and uncertainty. In turn, this would lead investors to seek alternative assets like Bitcoin as a form of hedging against traditional markets.
On the other hand, a decrease in jobless claims could boost investor confidence in traditional markets, potentially diverting funds away from cryptocurrencies. Fed officials are also keen on the labor market, cognizant of the risks that come with waiting too long to cut rates.
Personal Income and PCE Index
The US Bureau of Economic Analysis (BEA) will release the personal income, spending, PCE index, and core PCE on Friday. Weaker personal income and spending, coupled with softer inflation figures, could signal a slowdown in economic activity.
In response to this, the Federal Reserve may consider pausing interest rates to stimulate borrowing and spending and boost economic growth.
Meanwhile, the Personal Consumption Expenditures (PCE) index, excluding volatile food and energy prices, will be a key indicator of inflation. A higher-than-expected core PCE index could indicate rising inflationary pressures.
This would prompt investors to diversify their portfolios by investing in assets like Bitcoin, which is seen as a hedge against inflation. Conversely, a lower core PCE index could lead to a decrease in demand for cryptocurrencies as investors flock to more stable investment options.
Ahead of these US economic events, BeInCrypto data shows BTC was trading for $100,355, down almost 5% since Monday’s session opened.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Michael Saylor announced that Strategy purchased nearly $2 billion worth of Bitcoin. This is a massive leap over last week’s purchase, which was already quite substantial.
Nonetheless, the firm was only able to make this acquisition thanks to major stock offerings. Bitcoin’s price has been sinking over the last few weeks, and this could mature into a potential liquidation crisis.
Strategy Maintains Bitcoin Purchases
Since Strategy (formerly MicroStrategy) began acquiring Bitcoin, it’s become one of the world’s largest BTC holders. This plan has totally reoriented the company around its massive acquisitions, inspiring other firms to take up the same plan.
Today, the firm’s Chair, Michael Saylor, announced another purchase, much larger than the last few.
“Strategy has acquired 22,048 BTC for ~$1.92 billion at ~$86,969 per bitcoin and has achieved BTC Yield of 11.0% YTD 2025. As of 3/30/2025, Strategy holds 528,185 BTC acquired for ~$35.63 billion at ~$67,458 per bitcoin,” Saylor claimed via social media.
Strategy’s latest Bitcoin acquisition, worth just shy of $2 billion, is a major commitment. In February, the firm made a similar $2 billion purchase, and it was followed by a tiny $10 million buy and a $500 million one. The $500 million purchase, which took place on March 24, only happened thanks to a huge new stock offering. This move further cements Strategy’s faith in BTC.
By making these billion-dollar buys, Strategy is able to buttress the entire market’s confidence in Bitcoin. However, investors should be aware of a few potential cracks.
First of all, Bitcoin’s performance is a little subpar at the moment. Despite hitting an all-time high recently, Bitcoin is having its worst quarter since 2019, and there is not much forward momentum.
This could cause a unique problem for the company. Since Strategy is a cornerstone of market confidence, it is unable to offload its assets without jeopardizing Bitcoin’s price.
The firm’s debts are growing at a fast rate, and this could have dangerous implications if Bitcoin keeps falling. Strategy could be forced to liquidate, even if that seems unlikely now.
Still, it’s important to remember that these are only possible scenarios. Strategy has maintained its consistent Bitcoin investments for nearly five years, and it’s paid off tremendously well. However, if it keeps taking on billions in fresh debt obligations, this faith will turn into a gamble with very high stakes.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin (BTC) is on track to end Q1 with its worst performance since 2019. Without an unexpected recovery, BTC could close the quarter with a 25% decline from its all-time high (ATH).
Some analysts have noted that experienced Bitcoin holders are shifting into an accumulation phase, signaling potential price growth in the medium term.
Signs That Veteran Investors Are Accumulating Again
According to AxelAdlerJr, March 2025 marks a transition period where veteran investors move from selling to holding and accumulating. This shift is reflected in the Value Days Destroyed (VDD) metric, which remains low.
VDD is an on-chain indicator that tracks investor behavior by measuring the number of days Bitcoin remains unmoved before being transacted.
A high VDD suggests that older Bitcoin is being moved, which may indicate selling pressure from whales or long-term holders. A low VDD suggests that most transactions involve short-term holders, who have a smaller impact on the market.
Historically, low VDD periods often precede strong price rallies. These phases suggest that investors are accumulating Bitcoin with expectations of future price increases. AxelAdlerJr concludes that this shift signals Bitcoin’s potential for medium-term growth.
“The transition of experienced players into a holding (accumulation) phase signals the potential for further BTC growth in the medium term,” AxelAdlerJr predicted.
Bitcoin’s Sell-Side Risk Ratio Hits Low
At the same time, analyst Ali highlighted another bullish indicator: Bitcoin’s sell-side risk ratio had dropped to 0.086%.
According to Ali, over the past two years, every time this ratio fell below 0.1%, Bitcoin experienced a strong price rebound. For example, in January 2024, Bitcoin surged to a then-all-time high of $73,800 after the sell-side risk ratio dipped below 0.1%.
Similarly, in September 2024, Bitcoin hit a new peak after this metric reached a low level.
The combination of veteran investors accumulating Bitcoin and a sharp decline in the sell-side risk ratio are positive signals for the market. However, a recent analysis from BeInCrypto warns of concerning technical patterns, with a death cross beginning to form.
Additionally, investors remain cautious about potential market volatility in early April. The uncertainty stems from President Trump’s upcoming announcement regarding a major retaliatory tariff.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Marathon Digital Holdings, one of the largest Bitcoin mining companies in the US, made headlines with its announcement of a $2 billion stock offering to increase its Bitcoin holdings.
This strategic move, detailed in recent SEC filings, shows Marathon’s aggressive approach to capitalize on the growing crypto market.
Marathon’s $2 Billion Stock Offering: Key Details
On March 30, 2025, Marathon Digital Holdings announced a $2 billion at-the-market (ATM) stock offering to fund its strategy of acquiring more Bitcoin. The company filed a Form 8-K with the SEC, outlining its plan to raise capital through the sale of shares, with the proceeds primarily aimed at increasing its Bitcoin holdings.
According to the SEC filing (Form 424B5), Marathon intends to use the funds for “general corporate purposes,” which include purchasing additional Bitcoin and supporting operational needs.
Marathon holds 46,376 BTC, making it the second-largest publicly traded company in Bitcoin ownership, behind MicroStrategy. The company’s Bitcoin holdings have grown significantly in recent years, from 13,726 BTC in early 2024 to the current figure.
“We believe we are the second largest holder of bitcoin among publicly traded companies. From time to time, we enter into forward or option contracts and/or lend bitcoin to increase yield on our Bitcoin holdings.” Marathon confirmed
This $2 billion stock offering continues Marathon’s strategy to bolster its balance sheet with Bitcoin, a move that aligns with its long-term vision of leveraging cryptocurrency as a store of value.
Marathon’s strategy mirrors that of MicroStrategy. MicroStrategy’s stock price has soared with Bitcoin’s value, providing a blueprint for companies like Marathon to follow. By increasing its Bitcoin holdings, Marathon aims to position itself as a leader in the crypto mining sector while diversifying its revenue streams beyond traditional mining operations.
Marathon Digital CEO Fred Thiel advises investing small amounts in Bitcoin monthly, citing its consistent long-term growth potential.
The issuance of new shares to raise $2 billion could dilute the ownership of existing shareholders, potentially impacting the company’s stock price (MARA). As of March 31, 2025, MARA stock has experienced volatility, trading at around $12.47 per share, down from a 52-week high of $24, according to data from Yahoo Finance.
Moreover, Marathon’s heavy reliance on Bitcoin exposes it to the cryptocurrency’s price fluctuations. If Bitcoin’s price were to decline significantly, the value of Marathon’s holdings would decrease, potentially straining its financial position.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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