Five things to know about Bitcoin this week: US will see fresh "inflation surge"

Bitcoin starts 2023 with a whimper as volatility stays absent and BTC price tips favor fresh downside to come.

BTC (bitcoin)

NASDAQ down $16,801

The first week of 2023 gets off to a lacklustre start as traders and volatility both stay away.

After being stationary throughout the holiday break between Christmas and New Year's, BTC price activity is still constrained to a small range.

Bitcoin may have had a typical bear market year in 2022 after recording annual losses of roughly 65%, but for the time being, few people are actively forecasting a rebound.

The typical hodler is dealing with a difficult scenario as they wait for macro triggers from the US Federal Reserve and the effects of economic policy on the dollar's strength.

Cointelegraph examines the variables at play when it comes to BTC price performance in the upcoming week and beyond before Wall Street resumes trading on January 3.

Bitcoin traders fear new lows amid flatlining price

Bitcoin hodlers may be hoping for turbulence, but according to data from Cointelegraph Markets Pro and TradingView, BTC price activity has so far been noticeably lethargic.

Nothing seems to be able to change the current situation, not even low-volume Christmas trading, quarterly and annual candle closures, or even macro data printed before that.

According to the Bitcoin historical volatility index, Cointelegraph stated that Bitcoin volatility even managed to reach new record lows in the lead-up to the year's conclusion (BVOL).

As a result, traders are cautious about what the future holds for BTC/USD because there are still no indications that there has been a fundamental change in the market's behaviour.

"All the bulls have to do is get a small pump through resistance. Il Capo of Crypto said on the day: "This identical bull trap has been occurring throughout the whole 2022, however people don't learn.

Meanwhile, Toni Ghinea, a fellow analyst, reiterated his previous call for a $11,000–14,000 floor for BTC/USD.

Expecting all these levels to be reached in two to three months, a tweet on January 1 stated.

The performance of the stock market in 2022 has clearly shown the effects of Fed policy, with the S&P 500, for instance, completing the year 1,000 points under several of the most widely-accepted projections.

The U.S. Dollar Index is already having trouble as markets wait for the opening of Wall Street trading in 2023, which might be the first positive development for cryptocurrency assets this year.

The 100-point barrier will return if the U.S. Dollar Index (DXY) breaks through support, which has been untested for more than six months.

Markets: DXY on the verge of breaking down once again; 10yr rates hitting resistance; WTI recovering to resistance; gold pausing at resistance; stocks treading water.