Bitcoin is doing well at the start of the week, seeing limited rallies to the $40k range, but it didn't last long, and the coin turned bearish
Bitcoin is doing well at the beginning of the week, seeing limited rises to reach the $40K range, but that didn't last long, and the currency turned to the downside and is currently trading below the $36,000 level, affected by the Federal Reserve's decision to raise interest rates by 25 basis point, as he revealed his plans for further rate hikes in the future, and over the course of this week the leading cryptocurrency has lost around 9%.
Cryptocurrency market investors are eager to know which direction Bitcoin and other currencies will go Crypto This month as macroeconomic factors affect the sector.
Will it represent a point for the price of Bitcoin?
Since the US Federal Reserve began signaling the end of its quantitative easing program in November 2021, the cryptocurrency market has been on a downward trajectory, and now stands at 40% below its all-time high that month.
The main reason for the crypto market’s losses over the past period has been the macroeconomic factors that will contribute to the 2022 contraction, which prompted some long-term cryptocurrency investors to sell, although there are some signs of bullish momentum, according to for analysts.
One expert says bitcoin is heading in one of the most important areas of consolidation and the market is at a crossroads, noting that bitcoin is now in the $37,000-$40,000 range, down 45 % from its all-time high, and said, “After slowing down around the huge support level At $38,000, investors are looking wary if he will maintain support.”
Is there a potential bullish momentum?
Referring to the recent correlation of digital assets with stocks and macroeconomic factors such as inflation and the Russia-Ukrainian war, one crypto market analyst notes that cryptocurrencies could fall further if stocks continue to slide.
But there are positive signs as well, as miners are increasing their hashrate and are not selling their coins, and these are also indications of potential bullish momentum.
Crypto investors Sitting on the edge of the abyss
There is a lot of fear and uncertainty about the macroeconomic picture, as various sectors of the market are preparing for another rate hike from the US Federal Reserve, and in this regard, investors in the cryptocurrency market are sitting on the edge of the abyss and ready to take advantage of the positive trends that could be Prefer risky asset growth.
If the Fed raises interest rates in June, the crypto industry could shrink further, as traditional money managers may want to prefer safer assets. In general, we expect the crypto ecosystem to rely on its own underlying fundamentals to drive new orders that could impact On the prices of digital currencies in all areas.
Despite the crypto losses there is enough room for growth we can expect to see a more ambitious expansion in May and the rest of the second quarter, as the crypto community is showing optimism that they expect the average value of Bitcoin for the month of May to be $46,850 or 20% more than the current price of the cryptocurrency .