ahead of the Fed’s final interest rate decision on Wednesday. bitcoin price started to move. Grayscale said on Monday that cryptocurrencies may still be in a position to benefit if interest rates rise. According to the company, things have the potential to improve as long as they are in line with market expectations no matter what.
Bitcoin price fell 4.3% on Monday and is currently trading around $27,990, according to TradingView data. BTC rebounded from daily lows after MicroStrategy reported their report, supporting the company’s BTC strategy to remain strong.
The price of the world’s largest cryptocurrency by market capitalization fell by about 1.8% last month, but has increased by 69% year-to-date. The US central bank is expected to raise interest rates by 25 basis points, according to CME’s FedWatch tool.
Will Bitcoin Price Combat Volatility?
Highlighting the fluctuation in the second half of April grayscalebelieves there are several lessons to be learned from this movement.
Referring to the false warning from Arkham Intelligence, Grayscale commented, “Bitcoin may still be susceptible to a number of emotion-driven factors that can be affected by incorrect or incomplete information.” “Perception of the actions of major holders can also have a significant impact on the value of Bitcoin.”
However, Grayscale said that factors such as an additional rate hike and declining inflation “fit well with a bullish case for Bitcoin in the future.” Meanwhile, the failure of several regional banks shows that “investors continue to have an appetite for crypto during times of economic uncertainty.”
You can follow the current price action here.