On May 1st, 2023, Bitcoin saw a downturn after enjoying four months of successive increases through April–its longest run since ’21. Earlier this year, it had surged and registered its strongest month since January ’22. Generally, crypto markets are notoriously fickle, however, they waver in response to a variety of causes – economic hardships, market developments, or scandals.
The Story about Bitcoin
The Bitcoin token plummeted up to 2.3%, and was hovering around $28,612 when this article was written. Several minor cryptocurrencies, such as Ether, Polkadot, and even Polana, experienced a decline in value, while an index of the top 100 digital assets plummeted in the same direction.
Bitcoin bounced back strong in 2023, soaring 73% from its crypto crash the year before. But the market seems to have hit a snag at around $30K, and investors are on the edge of their seats for what will come next. Many think that difficult US banking regulations and a shift within The Federal Reserve could be major contributors to this resurgence – as people lose trust in paper cash, they look increasingly to digital monetary solutions.
Moreover, recently US regulators have also scrutinized the First Republic Bank. The anxiety around this situation also hindered the global markets as they waited for a resolution to this dilemma.
Adrian Przelozny, chief of crypto market Independent Reserve, chimed in on the nervous atmosphere surrounding First Republic Bank by noting that Monday’s bump in the price of Bitcoin could very well just be a regular up-and-down movement. A few remarkable investments were liquidated due to the temporary dip, triggering a domino effect.
Current Situation of Crypto
Bitcoin’s winning streak in April was the longest they’ve seen since six months prior. Previously, an impressive four-month run with Bitcoin has led to a whopping 260% jump through the coming twelve months.
The Bitcoin token and other cryptos are still subject to hazards, as the US regulators are paying close attention and traders possibly revising hopes that financial policy will get looser this year.
As of now, it is widely anticipated that the Federal Reserve will increase interest rates by an additional quarter percentage point on Wednesday in an effort to curb inflation, despite the fact that economic hazards are on the rise.