Bitcoin (BTC) struggled to support at $28,000 on May 2 after the month opened with multi-day lows.
Great volatility on the horizon
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it returned to the $28,000 mark on Bitstamp.
The previous day’s Wall Street open had brought the latest wave of volatility to the downside, with the pair dipping below $27,700.
Following the weekly and monthly close, a dip ensued, with $30,000 and beyond looking increasingly unreachable.
BTC price targets for market participants reflected the mood. Michaël van de Poppe, founder and CEO of the company Eight, said the option of seeing the $25,000 or $30,000 again was still on the table.
“Nothing is certain but Bitcoin sweep completed”, said to his Twitter followers about the latest lows.
“Get above $28,400 and we could go back to $30,000 in a few days. That’s not happening and we’ll see a drop over the next few days, $25,000 below. Big volatility on the horizon.”
Referring to the Federal Reserve’s May 3 decision on interest rate policy, another post described to Bitcoin as “in lateral territory, where both bears and bulls have arguments for both biases.”
“A lot of fear ahead of tomorrow’s FED event, probably unjustified, but we’ll see. We expect a slightly higher rise,” Van de Poppe added.
Falling Bank Stocks Doesn’t Inspire Cryptocurrencies
As for the Fed event itself, little was left to the imagination, with market sentiment beyond crypto pricing in an almost guaranteed 0.25% rate hike.
The odds on May 2, according to CME Group’s FedWatch tool, stood at 97.4%.
This would mirror the Fed’s March decision, which was accompanied by problems in the US banking sector.
On May 1, several local lenders lost value in an environment very reminiscent of six weeks earlier. Unlike then, however, Bitcoin did not seem willing to profit from the fallout.
US Regional Bank Stocks Today:
1.Valley National, $VLY: -twenty%
2.Metropolitan Bank, $MCB: -18%
3. Home Street Bank, $HMST: -18%
4. Harbor One, $HONE: -eleven%
5.PacWest, $PACW: -10%
6. Citizens Financial, $CFG: -7%
7.Zions Bank, $ZION: -4%
8.KeyCorp, $KEY: -4%
9. M&T Bank, $MTB:…— The Kobeissi Letter (@KobeissiLetter) May 1, 2023
This article does not contain investment advice or recommendations. All investing and trading carries risk, so readers should do their own research when making a decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.