Bitcoin It continued its downward trend in April on the first day of May and fell below $ 57,000.
BTC As the pre-FOMC decline continues, investors are wondering about the reasons for this decline and whether it will continue.
At this point, analysts agree that investors’ profit-taking was effective in the tremendous rise that took the BTC price to record levels above $ 70,000 in the decline that started in April, but warn investors that the decline may deepen further.
speaking to Reuters Fineqia research analyst Matteo Greco Stating that the profit taking of many investor groups was effective in the decline in Bitcoin and altcoins, he said:
“The recent downward trend can be attributed to increased profit-taking by investors who entered the market during the 2022 and 2023 crises, as well as by ETF investors who witnessed a significant price increase in their shares after entering the market in the first weeks of 2024.”
In addition, Greco said that the decrease in interest rate cut expectations following the data from the USA was also effective and that the view among investors that the FED will not be able to cut interest rates at all this year has intensified.
Greco ” investors reacted to the interest rate situation and the consecutive large outflows in spot BTC ETFs. “ said.
“Bitcoin is at the Crossroads!”
other than Greco FXPro senior market analyst Alex Kuptsikevich He also evaluated the recent decline in Bitcoin.
Looking at the Bitcoin chart, Kuptsikevich stated that the decline in BTC has entered a new phase and, like Standard Chartered analysts, claimed that the decline in BTC may continue.
“I think May is not just seasonal weakness for Bitcoin. The declines that started in April are continuing, and the chart has focused on $55,700, $51,000, and $52,000 in the decline over the last few weeks.
The decline may continue to these levels. However, both the FOMC announcements today and Friday’s monthly employment data may accelerate or reverse the downward trend. “
*This is not investment advice.
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