Bitcoin (BTC) started the week with upward momentum and experienced volatile trading today, May 7th. The price of the largest cryptocurrency in the market, along with a few other altcoins, has witnessed increased volatility in recent weeks. For instance, significant withdrawals from the US Spot Bitcoin ETF have heavily influenced sentiments in recent weeks.
Significant Movements in Bitcoin
This year, the Bitcoin price was significantly affected by the US Spot Bitcoin ETF approval, the Fed’s interest rate stance, and the Bitcoin halving. While investors awaited the Bitcoin ETF, Bitcoin has recorded positive transactions since last year. Particularly, the approval of the US Spot Bitcoin ETF in January boosted investor confidence.
Moreover, the success of Bitcoin ETFs also pushed BTC prices to an all-time high in mid-March. Concurrently, the recent approval of a Spot ETF in Hong Kong further boosted confidence, reflecting the growing institutional trust in the sector.
The Halving Process of BTC
The Federal Reserve’s stance on policy interest rates has also suppressed sentiments so far this year. The market was expecting about five rate cuts throughout the year while anticipating cooling inflation. However, economic data showed that inflation remained strong and dampened hopes for potential rate cuts this year. Currently, many analysts expect one or two rate cuts throughout the year.
Bitcoin Halving is one of the most significant events anticipated by the market in 2024. The last Halving event, considering its potential impact on BTC from previous events, has so far boosted market participants’ confidence. Historical data shows that Bitcoin’s halving event triggered a significant rise in BTC price, pushing it to a new high level. However, many market experts suggest that there was short-term volatility post-halving, but the upward trend continued in the long term.
