Bitcoin’s price slid below $40,000 Monday, falling under a key support level. The $40,000 benchmark has emerged as a make-or-break level for Bitcoin because how it performs from there could determine whether the market enters another bullish or bearish phase, experts say.
“Bitcoin could find medium-term support at around $37,000 and $31,000,” Kiana Danial, founder of Invest Diva, said in a TikTok last week analyzing Bitcoin’s price.
Investors have been wrestling with rising inflation, geopolitical crises, and concern over tighter monetary policy by the Federal Reserve. Minutes from the Fed’s March meeting last week showed its plan to shrink its balance sheet by $95 billion each month to combat inflation. The latest inflation report shows that consumer prices rose 8.5% in the year through March. That’s the fastest inflation rate since 1981.
These factors continue to drive extra volatility in the crypto and stock markets. The crypto market has been increasingly tracking the stock market lately, which combined with more mainstream adoption and the slumping prices we’ve seen to start the year, makes it even more intertwined with developing circumstances in Eastern Europe, experts say. Ethereum has followed a similar pattern.
The last time Bitcoin hovered below $40,000 was in early March until a brief surge following President Joe Biden’s signing of a sweeping executive order on cryptocurrency. The executive order directs government agencies to strategize on cryptocurrency regulation, and for the Treasury to continue considering the issuance of a government-backed digital currency. It marked the first concrete steps by the White House to regulate cryptocurrency.
Bitcoin hasn’t been above $50,000 since Dec. 25, 2021. Despite the
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