Critical Bitcoin Comment from Bloomberg Analyst: June, July!
While the cryptocurrency market is going through a stagnant period, Bitcoin (BTC) is still trading below the important price level of $30,000.
Fed Pressure Will Continue
Bitcoin managed to reach the level of $32,000 last week. However, experts said it was a “dead cat bounce” and the recovery was temporary. Analysts, evaluating the macroeconomic conditions, suggested that the bear market may continue. May has been a nightmare for the cryptocurrency market. The price of the leading cryptocurrency fell by about 30% in May. BTC’s dominance dropped to 46%. Bloomberg senior commodity strategist Mike Mcglone reports that Bitcoin is at a crossroads. According to the analyst, BTC could move in either direction from this level.
McGlone also stated that the Federal Reserve’s fight against inflation was the primary hurdle for Bitcoin and the cryptocurrency market at the beginning of June. According to reports, the Federal Reserve wants to continue quantitative tightening. Fed vice chair Lael Brainard said there could be “potentially a 50 basis point rate hike in June and July” from the data. BTC prices have been hit hard by the FED’s monetary policy. Brainard added that the Fed will likely raise rates. However, the increase will be less than expected. The US inflation rate broke the record for the last 40 years.
Bitcoin Could Drop To These Levels
Leading analysts suggested that the Bitcoin price could continue to decline. Experts also pointed out that BTC could consolidate in this range before falling further from these levels. It is claimed that BTC can fall into the price range of 22 thousand to 24 thousand dollars. According to Glassnode, approximately $1.3 billion has been outflowed from Bitcoin. However, the net output is around $698 million. The crypto market is down about 2% in the past day, with a market cap of $1.23 trillion.
Sentiment towards the crypto market has also dropped to near record levels. The Crypto Fear and Greed Index remained in the “extreme fear” zone for almost May. The sell-off in Bitcoin was also evidenced by the record-breaking transaction volume. Data from blockchain analytics firm Santiment shows that Bitcoin has seen the second-largest total transaction volume since hitting an all-time high in November 2021. The data shows that especially institutions are selling their Bitcoins .