Bitcoin (BTC) couldn’t halt its downward momentum and recently dipped below the $27,500 level. Despite showing solid progress earlier this month, with BTC even hitting a high of $30,929, the gains were short-lived.
The digital currency has since experienced a slump, falling below $28,000.
Bitcoin price
The current Bitcoin price stands at $27,600, with a 24-hour trading volume of $15,780,826,646. In recent hours, Bitcoin has experienced a slight decrease of 0.11%.
The live market cap for BTC is $529,030,894,780. Bitcoin has a total supply of 21,000,000 coins and a circulating supply of 19,355,781 coins.
Bitcoin Price Chart – Source: Tradingview
However, the cause of its downward rally could be the cautious sentiment among investors, as they await the US Federal Open Market Committee’s meeting next week.
In the meantime, mixed earnings from the tech sector are likely to influence crypto prices. Across the ocean, the bullish US dollar, supported by higher US interest rates, is seen as another key factor contributing to the pressure on Bitcoin prices.
Bullish US Dollar Weighs on Cryptocurrencies
The broad-based US dollar gained momentum and rose on Tuesday, driven by concerns about increasing US interest rates and fears of slowing economic growth, which heightened the demand for safe-haven assets.
It’s worth noting that the Federal Reserve is widely expected to raise interest rates by 25 basis points next week. Markets are also anticipating a mid-year pause in rate hikes, particularly as economic growth and inflation continue to decelerate. As we are all well aware, the US is set to release data on Thursday, revealing the country’s economic growth for the first three months of the year. Experts predict that the growth rate will be lower than before.
The US central bank, known as the Federal Reserve, is expected to raise interest rates next week. However, many people believe that they will likely pause afterward, given the economy’s weaker performance.
While this news could be favorable for the crypto market, it might not be sufficient to entice investors to invest in riskier currencies.
Significant Bitcoin Shifts by Long-Term Holders Influence the Cryptocurrency Market
The world’s largest cryptocurrency has recently been affected by significant movements from long-term holders, also known as “whales.” These whales have moved large amounts of Bitcoin, with one whale transferring 400 Bitcoin, worth almost $11 million, to various addresses.
Another whale, who had not moved their Bitcoin since 2011, sent 360 Bitcoin, worth about $9.8 million, to one address and the remaining 40 Bitcoin, worth $1.1 million, to others.
The reasons behind these movements are not yet clear, but some speculate that the holders are transferring their Bitcoin to new addresses as a protective measure.
Consequently, the actions of these whales have raised questions about the stability and security of Bitcoin. However, the overall impact of these movements on the cryptocurrency market remains to be seen.
Standard Chartered Bank Predicts Bitcoin to Hit $100,000 by Late 2024
On a positive note, Standard Chartered has forecasted that Bitcoin will likely reach $100,000 by the end of 2024 due to the end of the “crypto winter” and the recent turmoil caused by Silicon Valley Bank’s collapse. This event was seen as a key factor that prevented any further losses in BTC prices.
However, the reason for this bullish outlook could be linked to the recent turmoil caused by Silicon Valley Bank’s collapse, which has reinforced Bitcoin’s use case as a decentralized, trustless, and scarce digital asset.
Additionally, Bitcoin’s recent recovery above $30,000 has signified a turnaround for crypto miners who had previously experienced shrinking mining margins.
Lastly, the coin’s upcoming halving in 2024 and the Federal Reserve approaching the end of its tightening cycle are other factors that could positively influence Bitcoin’s performance in the coming days.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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