Good news for Bitcoin is that the U.S. government is about to open for business again and locked-up funds will be spent. Inflation figures should be released at the end of the week. If they are good, and the U.S. stock market continues to rise, Bitcoin could embark on its own major rally.
Bitcoin (BTC) market sentiment is still one of extreme fear. While it needs to be acknowledged that the $BTC price has moved rather close to the cliff edge, following several weeks of bearish price action, the stage could be setting for a huge rally back to the upside.
A reopening U.S. government is likely to have a positive impact on Bitcoin. The Treasury General Account (TGA) can normalise drawdowns and bond auctions can resume, potentially releasing billions of dollars in fresh capital.
A note of caution does need to be raised however. The CPI and PPI figures are due to be released later this week (government opening allowing) and these could ignite volatility to the downside as well
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