The king of cryptocurrencies is once again the talk of the town as the Bitcoin price continues to struggle in the market. With prices hovering just a little over the $27,000 mark, many investors are wondering if Bitcoin will ever recover from its recent dip.
As the broader cryptocurrency market trades sideways, the fate of the king crypto remains uncertain, leaving traders and investors to ponder how and when the it will bounce back.
Bitcoin Price Recent Performance Sparks Debate On Future Trajectory
The beginning of 2023 saw Bitcoin making headlines for all the right reasons. The cryptocurrency giant led an impressive rally that lifted the entire crypto ecosystem, proving naysayers wrong who had declared the asset dead multiple times in 2022.
The Bitcoin price soared beyond $30,000, marking an impressive run that left many investors optimistic about its future. However, this hot streak was abruptly interrupted, and the asset’s value plummeted back to $27,000, prompting speculation on whether this is merely a minor correction or the start of a more significant downtrend.
Source: CoinMarketCap
As of now, Bitcoin is trading at $27,300 with a 0.44% daily decline on CoinMarketCap. Despite this dip, there are several reasons to believe that the king coin will soon surge beyond the $30K zone.
Upcoming Economic Indicators Could Affect Fed Interest Rate Hike
The financial market is paying close attention to the release of economic indicators such as Personal Consumption Expenditures (PCE), Gross Domestic Product (GDP), and jobless claims on April 27, as they could have an impact on the possibility of a US Federal Reserve interest rate hike and the Federal Open Market Committee’s (FOMC) decision.
According to CME Group’s FedWatch Tool, there is a growing likelihood of another interest rate increase, which could add more pressure to the US financial system, with a 90% probability of a 0.25% hike.
Crypto Awakenings, an investor, predicted that if the Fed Chairman, Jerome Powell, announces a pause in the interest rate hike, it could trigger a break above $30,000 for Bitcoin price. On the other hand, if there is a hike announcement, the market might have already priced it in, and it would confirm that a “sell in May and go away” strategy won’t be effective in 2023.
Crypto Awakenings predicts that a pause could occur in May or July, with May being the more probable month. However, the market is quite uncertain, and fluctuations could occur.
Bitcoin price usually reacts to macro factors, so we’re yet to see the detail that would contribute to the alpha crypto’s rally or slump.
-Featured image from Kinesis Money
