- Bitcoin has experienced a recent price drop, but it is seen as a period of consolidation and a healthy correction after an explosive move upwards past $30,000 over the last several months.
- Investors are eyeing next week’s Federal Open Market Committee (FOMC) meeting, with the CME FedWatch Tool currently showing a 91% probability of the U.S. central bank raising interest rates 25 basis points (bps)
Bitcoin drops to $27.3K, Ether edges toward $1.8K amid investors’ interest rate concerns
Bitcoin’s price has been hovering around $27,350, down 0.4% in the past 24 hours, with ether (ETH) trading at around $1,833 on Monday, down 0.8% from Sunday. The prices for both cryptocurrencies have sunk 7% and 11%, respectively, in the past week, as investors considered industry and macroeconomic uncertainties, including a drop in US dollar liquidity.
Bitcoin’s recent price drop is seen as a healthy correction after an explosive move upward over the past several months. Investors are cautious ahead of the Federal Reserve’s meeting next week. The CME FedWatch Tool indicates a 91% probability of the US central bank raising interest rates 25 basis points (bps).
BTC’s value proposition as an asset without counterparty risk has never been more compelling, and its price reflects that, according to Sam Callahan, an analyst at bitcoin financial services firm Swan Bitcoin. Meanwhile, Edward Moya, senior market analyst for foreign exchange market maker Oanda, suggests that until crypto traders see a clear positive development on the regulatory side, bitcoin might remain stuck in a consolidation, trying to find the lower boundaries of its trading range.
Crypto data firm Kaiko reported that despite the recent price drop, the BTC-to-gold ratio continued to head north last week, with one BTC equalling 14.7 ounces of gold in early April, up from nine ounces at the beginning of the year. A rising ratio indicates that BTC is outperforming safe-haven gold despite ongoing macro uncertainty and is a bullish signal, Kaiko said.