The American USA Federal Reserve (FED) the main interest rate was raised again by 0.25% at the beginning of May. So the prime interest rate in the US is between 5 and 5.25%. At the same time, however, there are increasing signs that this increase will be the last in the near future.
Experts disagree on whether Bitcoin benefits so much from the fact that the course exceed US$30,000 can. However, many analysts also agree Crashes to 25,000 Many US dollars are possible.
There are some details on links between rising interest rates and falling prices for stocks AND cryptocurrencies. When interest rates rise, borrowing becomes more expensive, which is not good for new investments. Ultimately, this also reduces consumer spending and the demand for cryptocurrencies.
The course of Bitcoin in the last few weeks and months shows how volatile the cryptocurrency is and that cases between 25,000 and 30,000 US dollars are possible at any time.
Will Bitcoin hit $30,000 and take the rest of the crypto market with it?
Analysts currently see prices around US$ 25,000 as more likely than a permanent crossing of the US$ 30,000 mark. It is clear that Bitcoin can trigger further price increases by crossing the magic 30,000 mark, which ultimately benefits other cryptocurrencies such as Ethereum.
In addition to Ethereum, of course, new cryptocurrencies will also ultimately benefit. For Bitcoin to surpass $30,000, it must hold resistance at around $28,400. Bitcoin is currently in a sideways trend that can be broken up and down.
Bitcoin price has already increased by 70% in 2023: is more possible?
After all, Bitcoin is in 2023 almost 70% to up to 31,000 US dollars up, but he has given back some of his gains. However, it is worth investors keeping an eye on bitcoin price, especially the $28,400 level. If the cryptocurrency surpasses this mark, it quickly goes to $30,000 and above.
Because of the now clearly recognizable link between interest rates rising and share prices and prices falling cryptocurrencies, the announced pause in interest rate increases will surely lead to a new boom in cryptocurrencies. The course of Bitcoin will quickly show this in the coming weeks and months.
Activity on the Bitcoin blockchain is currently decreasing. This is often accompanied by falling prices. Investors who have bet on Bitcoin for the past 30 days are currently mostly still in the red. This usually means less risk for investments at the current time.
Cryptocurrencies with potential in 2023
Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.