Bitcoin has once again closer from 30,000 dollars before fall back. BTC recorded earnings during 4 consecutive months in 2023foreshadowing a new ATH to come according to some analysts.
The course of the first cryptocurrency market stumbled overnight after surpassing 29,900 in Sunday’s trading and devolves 2.3% over 24 hours to about 28,500 dollars.
Since the beginning of the year, the price of Bitcoin has risen by more than 70% and closed in April its highest longest monthly winning streak since 2021. “Over the past decade, the winning series from four months on Bitcoin suggested a increase average of 260% in the following year,” reports Bloomberg.
As can be seen in the graph above, BTC had recorded a string of consecutive months of gains in 2020 before reaching a new high of nearly $70,000 in the fall of 2021. In a similar scenario, the price of the digital coin could thus soar to more than $100,000, say analysts at the US financial group.
In 2023, turmoil in the banking industry, slowing inflation and low liquidity in the crypto market seem to have allowed Bitcoin to rebound.
Investors are now expecting a likely rate hike The U.S. Federal Reserve is likely to raise rates in May. The Fed will hold a meeting on Thursday.
Bitcoin has remained below $30,000, which is a key resistance level, but has yet to test any major supports. For now, the market is expecting a rate hike this week, but we will likely see some price movement following the Fed’s post-release commentary,” commented Joe DiPasquale of BitBull Capital.
Attention is also focused on the troubled bank First Republic Bank. US regulators have asked other financial institutions, including JP Morgan and Bank of America, to bid for its assets.
“The market is very nervous waiting to see what happens to First Republic Bank,” says Adrian Przelozny, director of the Australian exchange Independent Reserve.
This year, several U.S. banking institutions, including some serving crypto giants, have filed for bankruptcy or been shut down by the government. “Crypto climbs during banking crises, and it doesn’t look like the crisis is over,” Matt Hougan, CIO of Bitwise said last week.
On this Labor Day, the entire cryptocurrency market is in the red. ETH, XRP, ADA are losing 3%, 2.5% and 2.7% respectively over 24 hours. The platform’s token BinanceBNB, is one of the few assets to rise (+3.3% over 24 hours) on Monday morning.
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