The price of Bitcoin (BTC) fell below $40,000 on April 11 out of growing concerns about rising interest rates and global macro risks. From April 10 to 11, Bitcoin Plunged 10% in one day. The market expects U.S. inflation to hit 8.4% in March, the highest level since 1982. Goldman Sachs Jan Hatzius said last Friday that the Fed may need to raise interest rates above 4% to keep inflation in check.
Bitcoin has been trading between $35,000 and $45,000 so far this year. Although the currency broke above $48,000 last month, briefly recouping its losses for the year, it failed to break the resistance near its 200-day moving average. Dropping below $40,000 could take the price of Bitcoin lower to as low as $30,000.
One reason behind the recent plunge is Bitcoin miners rushing to move their coins out of wallets. According to a CryptoQuant post, the indicator called “miner outflow” saw a spike before Bitcoin’s price went downward. As the chart shows, miner outflow reached its highest point in April since early 2021. This may suggest miners are preparing to sell their Bitcoin.
Arthur Hayes, the co-founder of crypto trading platform BitMEX, said Bitcoin’s correlation to tech stocks continues to increase. As long as this correlation remains high, he wrote, the crypto market “will lead equities lower as we head into the downturn, and lead equities higher as we work our way out of it… Bitcoin and Ether will bottom well before the Fed acts and U-turns its policy from tight to loose.” Observing the fundamentals of Bitcoin and Ether, he predicted their prices dropping to $30,000 and $2,500 respectively in June. While he didn’t question the long-term potential of Bitcoin, he foresaw a “muddle-through, sideways, boring market with small bouts of downside volatility followed by a tepid recovery.”
How to Make Profits in the Downtrend?
In times of volatility, futures trading is one of the best tools to help you earn profits and the choice of many professional traders. With futures trading, you can either buy up (go long) or sell down (go short), which means that you can take profits whether the market rises or falls. What’s more, there is 100x leverage to magnify your profits.
For example, a trader opens a short position of 100 BTC at the price of $40,000 with Bexplus 100x leverage. Then, the price goes down to $35,000. As a result, he will make a profit of ($40,000 – $35,000) * 100 BTC / $35,000 = 14.2 BTC. However, the margin he needs to prepare is only 1 BTC.
Bexplus offers 100x leverage in BTC, ETH, DOGE, ADA, and XRP futures contracts. Bexplus is trusted by over one million traders around the world, including the USA, Japan, Korea, and Iran. No KYC, no deposit fee, traders can receive the most attentive services, including 24/7 customer support and personal account manager.
100% Deposit Bonus
Bexplus offers a 100% bonus for every deposit, with which you can open bigger positions and gain more profits. Deposit 1 BTC and you will get 2 BTC credited to your account. Every user can get up to 10 BTC for each deposit. (Bonuses are not withdrawable, the profit obtained with the bonus can be withdrawn.)
Bexplus BTC Wallet
When you are not trading, you can transfer your BTC to the interest-bearing wallet and enjoy up to 21% annualized interest without any risks, which is no doubt one of the most profitable rates in the industry.
With Bexplus’ copy trading, you can automatically copy the trades of other excellent traders. It can be a really valuable portfolio for those who are just starting out in trading, or those who don’t want to dedicate a huge amount of time to manage their trades.
A Demo Account with 10 BTC
A demo account with 10 replenishable BTC offered by Bexplus can help you better familiarize yourself with leveraged trading and practice trading without taking any risks. You can also learn to analyze the market and use the toolkit with the demo account.
24/7 Withdrawal and 24/7 Customer Support
You can submit a withdrawal request anytime you want and have your deposits back in as fast as 30 minutes during work hours. If you encounter any problems, you can contact customer support via different channels like e-mail and live chat.
With the Bexplus App, you can manage your account and trade anywhere and anytime you want. It also integrates other tools like real-time charts, news alerts, etc., which are going to be your capable assistants in trading. Download the Bexplus APP on the Apple Store and Google Play.
Click here to register on Bexplus and get a 100% deposit bonus now.
Disclaimer: The opinion expressed in this chart solely author’s. It does not interpreted as investment advice. TheNewsCrypto team encourages all to do their own research before investing.