Bitcoin (BTC) saw its price rise to $63,469 in the last 24 hours, but quickly erased those gains. With statements from Fed members and the anxiety over dropping volumes over the weekend, investors easily hit the sell button. What does popular crypto investor Poppe aim for next? What awaits cryptocurrencies at this stage?
Bitcoin Price Dropped
The Fed is now aware that the decline in inflation has stopped and likely after the April inflation data comes in poor, discussions on additional interest rate hikes will begin. The Fed, which was reluctantly convinced to move to the interest rate ceiling at the end of last year, will now put extra pressure on risk markets if it decides to move the neutral interest rate higher.
BTC price saw statements from Fed members suggesting “the neutral interest rate might have changed” before it fell in the last 24 hours. Markets that were expecting a 150bp rate cut for 2024 at the end of last year are now pricing in two rate cuts with a 50bp drop. Worse yet, the 50bp level is even below the average 75bp reduction forecast by Fed members for 2024.
A sudden wave of volatility disrupted a calm market, causing Bitcoin’s price to drop by more than $2,000, while futures saw a liquidation of $127 million. Now investors are anxious, and we might see deeper downward spikes in altcoin volumes over the weekend.
Crypto Expert Predictions
Van de Poppe has started to feel confident about a deeper bottom following the recent drop. The analyst, known for his above-average optimism under normal circumstances, was waiting for the price to drop for the last accumulation wave. He wrote a few hours ago;
“Bitcoin has returned to a critical support area. Not holding? Then it will be the final phase of the correction. I think we could see a new bottom between $52,000 and $55,000.”
The second popular analyst, Daan Crypto Trades, wrote that the recent sharp drop was to punish long positions above $63,000. As volumes weaken in the coming hours, investors should be cautious against bears attempting deeper dips. These days, the ETF channel is also not supportive, increasing the risk.
