The Fed’s decision to raise interest rates for the first time since 2018 to combat rising inflation has sparked a reaction from global financial markets, including Bitcoin, which is on track to record its first monthly loss since January.
Since it dipped below $40,000 last week, the largest cryptocurrency by market capitalization has been regularly breaking testing it. It has lost more than 15% of its value in April, while Ether, the second-largest asset, has lost roughly 14%.
Bitcoin prices have been extremely volatile in April, plummeting from an open price of $45,526 to current prices of $38,565, a loss of more than 15% and the worst for the month in history according to Coinglass data.
The price of bitcoin has settled below the psychological price level of $40,000, which is a major price level for hodlers, but where could it go as the monthly close approaches?
Bitcoin and the majority of the crypto market have been moving in lockstep with the global equities market, particularly tech stocks, sharing the spoils of global financial market uncertainty.
The monthly close does not appear to favor the bulls, and the global share market’s opening on Monday, after closing the previous trading week in a sea of red, could spell even more trouble.
Bitcoin has so far held its ground by not sliding below the major support level of $37.5k, but there’s a good probability it may test lower levels in May.
Bitcoin’s price trajectory is unknown, and there are no clear indications as to what will happen in traditional markets in the coming months, which will have a significant impact on Bitcoin’s path, so keep a close eye on it and manage your portfolio carefully.