During the past weekend, the overall cryptocurrency market experienced sustained downward pressure. Bitcoin’s price underwent a further 2.34% decline, dropping to $62,311. Similarly, the altcoin sector encountered intensified selling activity, with the top ten altcoins correcting by 4-10%. Will BTC price crash further aftre May1? Let’s take a look at this in more detail.
How has the Bitcoin price moved recently?
Currently, the price of Bitcoin stands at $62,300, with a 24-hour trading volume of $128.17 billion, a market capitalization of $1.23 trillion, and a market dominance of 52.60%. Over the past 24 hours, the price of BTC has decreased by -2.44%.
Bitcoin achieved its highest price on March 14, 2024, hitting an all-time high of $73,628. Its lowest recorded price occurred on July 17, 2010, at an all-time low of $0.050000. Since its all-time high (ATH), the lowest price observed was $59,734 (cycle low), while the highest price post-cycle low was $67,180 (cycle high). The current sentiment towards Bitcoin price prediction is bearish, as indicated by a Fear & Greed Index reading of 67 (Greed).
As of now, the circulating supply of Bitcoin is 19.69 million BTC out of a maximum supply of 21.00 million BTC. The current yearly supply inflation rate stands at 1.74%, representing the creation of 336,032 BTC in the past year.
Can a strong correction happen again in Bitcoin Price?
This week brings significant economic developments for the United States, starting with the highly anticipated Federal Reserve interest rate decision scheduled for May 1. Analysts foresee a 95.6% likelihood that the Fed will maintain interest rates at their current levels. Furthermore, on May 3, the U.S. will release the April unemployment rate. Expectations for a U.S. interest rate decrease this year have diminished to just one.
However, concerning data from the U.S. has surfaced this week. A weaker-than-expected GDP report suggests an economic slowdown, while higher Core PCE figures indicate persistent inflation challenges, posing dilemmas for the Federal Reserve.
Although there are concerns about the U.S. potentially entering a stagflation scenario characterized by negative GDP growth and high inflation, this remains speculative for now. Market sentiment has shifted accordingly, with current expectations now pricing in only one interest rate cut for 2024. This contrasts starkly with initial forecasts of seven cuts at the beginning of the year and three in March.
Will Bitcoin Price Crash after May 1?
The question of whether Bitcoin’s price will crash again requires a comprehensive analysis of its recent performance and key indicators. Over the past year, Bitcoin has demonstrated significant growth, with a price increase of 113%. This outperformance is notable as it surpasses 65% of the top 100 crypto assets within the same period and has even outpaced Ethereum, a leading cryptocurrency. Moreover, Bitcoin is currently trading above its 200-day simple moving average, indicating a positive trend in its long-term price trajectory. Additionally, Bitcoin has shown strength in the short term, with 15 out of the last 30 days being positive (50% success rate).
Furthermore, Bitcoin maintains high liquidity, substantiated by its substantial market capitalization. Despite trading near its cycle low, the combination of these factors paints a relatively bullish picture for Bitcoin’s near-term outlook.
