Bitcoin (BTC) price hit a new low on January 7. 2022 continues to deliver uninspiring price action.

BTC / USD (Bitstamp) 1-hour candlestick chart. Source: TradingView

Trader: BTC price should close above $ 42,400

Data from Cointelegraph Markets Pro and TradingView showed that The BTC / USD pair reached its lowest levels since September overnight, reaching $ 40,938 on Bitstamp.

The pair had initially bounced off $ 42,000, but then renewed its decline, exceeding the minimum seen in the December liquidation cascade.

Among traders, the discussion centered on a similar event occurring, with targets that even included a drop below September lows of $ 30,000.

“It could go even lower with a liquidation wick, below September lows,” warned popular Twitter trader Crypto Ed as part of his latest forecast.

At current levels, Bitcoin was also threatening to disappoint trader Anbessa on daily time frames.

Commentators argued that the macro odds were against Bitcoin and cryptocurrencies, with the headwinds coming from, among other things, events in Kazakhstan, where 18% of the Bitcoin hash rate is estimated to be located.

Following massive internet outages across the country this week, hash rate estimates began to show a steep drop. of around 20 exahashes per second (EH / s) from what were previously all-time highs of 192 EH / s, evoking last year’s exodus of Chinese miners.

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“The money printer keeps printing”

Looking to the future, Others were also reticent about the outlook for the cryptocurrency market thanks to macroeconomic policy.

Among them is Arthur Hayes, former CEO of derivatives exchange BitMEX, who noted that the rate hikes programmed by the United States Federal Reserve and the reduction in asset purchases are souring the appeal for holders of risky assets.

Easy money, wrote in a new blog post, it’s running out.

“Given the law of large numbers, a simple resumption of the previous trend in asset purchases will not cause money supply growth to accelerate suddenly and sharply. Therefore, although risk assets would rejoice – cryptocurrencies included – the best case is that asset purchases move slowly towards their previous all-time highs, “he said.

“Even if that happens, the only way the crypto markets would move higher is if the Fed publicly turned on the taps, and then fiat money flowed into crypto.”

It remains unknown when the Fed will raise rates, but the buying cuts have already begun.

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