Several crypto market analysts are reportedly emphasizing on the potential of a bullish movement in terms of price action for the crypto markets in January, as referred to by Alex Krüger as the “first week of the year effect.”

Specifically, Krüger – an economist and trader – reportedly mentioned via a Twitter post that for consecutive four years, Bitcoin (BTC) has reportedly experienced positive returns in the first week of January, falling between the 7% to 36% zone between 2018 and 2021.

In 2021, BTC reportedly climbed to secure the $41,441 standing from $28,653 in the first week of January. 

When coming upon the inquiry regarding what happened in the past year, Krüger reportedly shared that “Tbf only 2020 and 2021 matter, different markets, so do with those two data points as you will.”

“Still expect a strong crypto up market in early Jan driven by fund inflows. Then risk-off ahead of the next FOMC (Jan/26) if the next inflation print comes in too hot (Jan/12).”

The optimism he adopted for early January is reportedly the result of the expectation he has for strong “fund inflows”, which seems to be working accordingly with the sentiments of the Head of Real Vision – Raoul Pal.

Pal reportedly disclosed via a YouTube interview on December 3rd his belief of the sell-offs on Bitcoin were done, which consequently leads to a strong beginning for January, as institutional capital is reinvested in the market.

From ExoAlpha chief investment officer David Lifchitz’s perspective, the selling of institutions is still happening for 2021, in their efforts to lock tax losses, and the bounce back in January could potentially have correlations with the phenomenon.

Fintech and wealth management firm deVere Group CEO Nigel Green reportedly believed that December could be considered to be the most terrible monthly showing since May of 2021, because of what he refers to as “panic sellers practically giving away their cryptocurrencies to wealthy buyers.”