This Week’s Bitcoin Highlights
Among other news, Bitcoin’s price recovery took it to a multi-day high of $64,500 yesterday, although the asset failed to continue its ascent, retreating more than a thousand dollars since then.
This month has started with difficulties for Bitcoin bulls, as the cryptocurrency failed to surpass $65,000. The massive correction took the asset to its lowest price, $56,500, in more than two months.
Greater volatility was also generated, due to the Federal Reserve’s refusal to continue raising interest rates, due to BTC pumping and dumping $2,000 in minutes on Wednesday afternoon. Only then did the gradual price recovery begin as Bitcoin jumped to $59,000 on Friday.
The bulls initiated another move that took the asset to $62,000 and beyond. This rise reached a multi-day high of $64,500 yesterday.
Despite this, Bitcoin failed to surpass that level and has retreated more than $1,000 since then. Still, it is trading above $63,000 and its dominance over alts has approached 51%. On the contrary, its market capitalization has decreased to $1.244 trillion in CG.
FOMC Member Speeches to Boost BTC Price Trends
This week ending May 3, a report from the CME FedWatch tool reveal a drop from 42.6% to 32.6% of the probabilities that the Federal Reserve will leave interest rates unchanged in September.
The influence on the US market of BTC-spot ETFs became evident. The US market for this ETF recorded net inflows ($378.3 million) for the first time in eight sessions.
Furthermore, Grayscale Bitcoin Trust (GBTC) recorded very significant net inflows ($63 million) for the first time since the launch of the BTC spot ETF market on January 11.
The economic calendar in the US is expected to continue to gain attention next week. Investor expectations for a Fed rate cut in September could be affected by U.S. jobless claims and consumer sentiment numbers from Michigan. Likewise, a more dovish Fed rate path could boost demand from BTC and BTC spot ETF buyers.
However, FOMC members’ speeches could further affect price trends. Investors would be wise to consider views on inflation, the economic outlook, and the timing of a Fed interest rate cut. Inflation remains an issue, even though the Employment Report raised expectations of a rate cut in September.
Some Experts Believe Bitcoin Will Go Higher
“I think we are being misled by the April turmoil and I think that is why it is a buying opportunity for both Bitcoin and stocks now.”
He added that “It doesn’t mean it’s going to change today, but I don’t think it’s a ceiling.”
The executive claims the most recent decline was a healthy correction, possibly driven by profit-taking.
However, another analyst, @el_crypto_prof, taking to X (formerly Twitter) to draw a parallel with a historical market trend, claimed that history does not replicate and that BTC has followed a significant trend since early 2023.
Shedding light on the future prospects of Bitcoin, he added that “The thing will be sent higher. It’s only a matter of time, imo.”
Most analysts agree that current market conditions do not imply the end of the bull cycle, but rather are a temporary setback.
As for the metrics and what they point to, it is necessary to consider the analysis that AMBCrypto did. Since April 3, there has been minimal activity, suggesting no indication that prices have bottomed.
Furthermore, the Bitcoin network’s realized profit/loss (NPL) data, which measures the difference between the last price moved and the current market price, also showed no signs of a price bottom.
By Leonardo Perez