Bitcoin Volatility on The Horizon Amid Banking Crisis Resurgence
BITmarkets Team
May 02, 2023
As the U.S. banking crisis creeps out once more, Bitcoin (BTC) struggled to retain the $28,000 price-tag on May 2 as the month opened on multiday lows.
At the time of writing this article, the value of BTC has barely surpassed the $28k mark with volatility beginning to kick-in. Over the past five days, data from CoinMarketCap shows that BTC dwindled more than 5% amid the resurgence of the U.S. banking crisis and the fears that come with it.
This has caused market players to reflect, and it’s worth to note the argument of Michaël van de Poppe, founder and CEO of trading firm Eight, which expects Bitcoin to undergo quite the volatility in the foreseeable future:
“Breaking through $28.4K and we could be back to $30K in a few days. Not breaking and folding coming days, $25K next. Big volatility on the horizon,” he tweeted on May 1. A newer tweet by Van de Poppe on May 2 suggests that Bitcoin investors and traders are currently “in sideways territory, where bears and bulls have arguments for both biases.”
The U.S. Federal Reserve is set to determine its next move on May 3 with regards to its monetary policy stance on inflation, and market participants are expecting a 0.25% interest rate hike.
Sources:
https://cointelegraph.com/news/bitcoin-price-sweeps-lows-but-analysis-still-predicts-a-25k-dive
https://twitter.com/CryptoMichNL/status/1653081508586962944
