Bitcoin (BTC) prices have been stuck around the $30,000 level for almost a month, with a few reasons offering an upswing lift.
According to Coinmarketcap.com, at the moment Bitcoin is valued at $30,318, pretty much unchanged from its early May trading.
The currency has dropped more than 50% since its record high in 2021. Also in 2022, Bitcoin is down 35%. The majority of its shortfalls have been caused by macroeconomic issues. These issues include growing inflation, interest rate rises, and the Russia-Ukraine conflict.
Despite its significant drops this year, analysts believe Bitcoin is still yet to reach its base. Before a rebound, as per the predictions the price will trade from $28,000 to as low as $20,000.
More Bitcoin Price Losses Ahead
Willy Woo, a popular crypto researcher, stated on Twitter that while BTC has seen some purchases at lower levels, the currency still needs to confirm a support.
Woo stated, in comparison to prior BTC crashes, 60% of total investors were at loss. Now, just 47% are at a loss. This means that the token will suffer more losses.
The cryptocurrency continues to experience a good level of institutional purchase. However, this is not enough to keep prices stable for now. Considering the troubling macro situation, the bulk of traders are more cautious to get in at reduced costs.
Critical US Inflation Ahead
Bitcoin, just like the stock market, has been trading in a narrow range this week in expectation of critical US inflation statistics on 10th June. This is an even greater estimate for May to cause market havoc, since it will signal further Federal Reserve policy pressure.
Despite inflation dipped in April, it remained at 40-year highs. If this pattern continues, BTC and the crypto market will face much more suffering. As the rising inflation might create a massive recession