bitcoin (B T c) has been hovering precariously in the $29,000 region for over a month after showing a steady growth of 11% during the same period. Such dynamics could indicate the potential for a major bull run, especially on the slightest sign of a positive news background from the regulatory and institutional ends, after a prolonged period of market stagnation.
current fear
The beleaguered $30,000 mark is seen as a serious resistance for the price of bitcoin, as evidenced by the recent rush of thousands of BTC holders to recover their gains in recent months. A total of $80 million was liquidated from the market on April 26, giving bears a good reason to consider the possibility of price breaking out in the very near future.
Events in late 2022 and early 2023, including the collapse of the FTX exchange, are likely key drivers of long-term investor sentiment and market momentum. As the BTC price continues to rally, the meager balances on crypto exchanges, which currently total around 2.19 million BTC, is good evidence of the ongoing accumulation of reserves ahead of the asset’s imminent appreciation.
Institutional investors are also in the same league as microstrategy (MSTR) adding an additional 7,500 bitcoins to his portfolio over the past two months, bringing total holdings to approx. 140,000, With that number equating to roughly $4.1 billion at the current price, there’s reason to believe the company’s analysts are expecting a big hike in prices. The domino-like collapse of the banking sector in the United States is only fueling such belief as trust in alternative store of value instruments such as bitcoin begins to gain weight.
aiming high
Historical data on bitcoin’s price performance is strong evidence to suggest that the current price will either remain stable or turn aggressive until May. The adage “sell in May and forget” is proof of this, although the market can decide to take a dip at any time.
Most analysts believe that bitcoin is “destined” to reach a price level of around $40,000-45,000 in the third and fourth quarters of the year. The foundation of such anticipation is the market’s ongoing search for bullish events that could trigger price growth. However, many experts are convinced that both institutional and retail investors should settle with bitcoin for a possible return to the $25,000 correction level. While at first glance, such a decline may seem pessimistic, it provides a favorable range for more investors to enter the asset in preparation for the next bullish cycle that will hopefully lead to higher prices.
fed factor
One important event that could act as a catalyst for market growth is the recent Fed meeting, which resulted in a fresh hike of 0.25%. The clear risks of a recession and an looming banking crisis will prompt the regulator to loosen its monetary policy clutches, exerting significant pressure on both cryptocurrency and stock markets.
Recent statements by the Fed indicate that the United States has reached a critical level of public debt it can no longer support in light of the weak global position of the US dollar. With this in mind, the US may begin to change its economic policy, attracting significant attention and pinning great hopes on the cryptocurrency market.
through the mist
The price of bitcoin is highly dependent on supply and demand. Currently, demand is lagging, as investors seek alternatives in commodities for storage value. However, sudden movements by regulators such as the Fed have always resulted in a sharp increase in demand for bitcoin, as the asset is a non-traceable investment instrument.
Another factor that could drive the price of bitcoin is the next halving exactly one year later. With commodities markets in turmoil, BTC mining difficulty increasing, and the US banking system faltering, bitcoin could realistically be somewhere between the current price of $30,000 and the expected optimistic highs of $45,000 by the end of the local maximum. can see the values. Year.
The views and opinions expressed here are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
