Bitcoin is now down by more than 20% from the all-time high it reached in mid-March above $73,000.
Moreover, the world’s largest digital coin and the broader crypto market in April snapped a seven-month winning streak with their sharpest monthly decline since November 2022, which was when the crypto exchange FTX collapsed.
April has proven to be a challenging month for Bitcoin. Moreover, the broader financial markets have also encountered turbulence.
Traditional markets like the Nasdaq and S&P 500 experienced declines of 2% and 1.6%, respectively, following U.S. economic reports indicative of stagflation — characterized by slowing growth and accelerating inflation.
This economic backdrop has led to lowered expectations for the U.S. Federal Reserve interest rate cuts, further dampening the outlook for cryptocurrencies. As expected, the downward trend has extended beyond Bitcoin.
This widespread correction threatens to end a seven-month winning streak for the crypto market.
Here’s what crypto experts have to say about the current correction in Bitcoin price.
Kristian Haralampiev, Structured Products Lead at Nexo: “The market may feel tired and lacking a stimulant may be ready to test further bottoms in the $50,000 range. Positively, today’s sell-off saw little in terms of liquidations, suggesting markets are not heavily leveraged. That may result in an opportunity for market participants to buy into the correction to reclaim the low $60,000 range.”
Dmitry Zhelezov, Co-founder of Subsquid: “Post-halving, the market usually trends sideways or downwards–this is not a surprise. However, the reduced block subsidy is offset by increased fees, driving more activity in the network.
“As a result, we’re witnessing the rise of things like ordinals, runes, brc20, Bitcoin VM, and of course Bitcoin L2s. “As this ‘bitcoin renaissance’ kicks off, we anticipate a surge in infrastructure projects centered on Bitcoin, and we ourselves at Subsquid are focussing on this growing opportunity with our indexing tools and decentralized data lake.”
Eran Peled, Head of Markets at Orbs: “Despite recent fluctuations, Bitcoin’s journey aligns closely with the Power Law Model, predicting substantial long-term growth. Over a decade of historical data now supports the model’s reliability, forecasting that Bitcoin will surpass $1,000,000 by the 2030s.”
“Current price is ahead of the model’s support line by almost two years. This is typical in bull markets and suggest we may see even lower prices in the near future. That being said, viewing these patterns, I remain confident in Bitcoin’s upward trajectory and am still very bullish in the long term.”
Ken Timsit, Managing Director at Cronos Labs: “US job and wage growth was higher than anticipated in recent reports. As a result, the Fed’s comments, expected today, are likely to signal that rate cuts are unlikely to happen this year. This has hurt riskier assets like stocks and cryptocurrencies in recent days, as is probably accompanied by a significant over correction given that markets were very bullish in Q1.”
Source: Cryptocurrency - investing.com
