Bitcoin’s value dropped to $28,572, hitting new lows for the month on the night of April 4. This drop in value was caused by rumors regarding Binance, the largest cryptocurrency exchange, which unsettled already delicate markets. However, the price of Bitcoin bounced back after rumors of the arrest of Binance CEO CZ began to circulate among traders. Now, traders are looking towards a potential value of $30K for Bitcoin in the near future.
BTC price returns to $28,000 after weekly low
Bitcoin’s value dipped to $27,240 on Bitstamp, its lowest point since March 28th, following rumors that Binance CEO Changpeng “CZ” Zhao is wanted by Interpol. These claims emerged from an unintentional leak of an encrypted tweet by Cobie, a private Twitter account, which lacked evidence and was subsequently followed by a market rebound. Despite the dip, Bitcoin has since recovered and is currently trading above $28,000.
According to Michaël van de Poppe, founder and CEO of trading firm Eight and a Cointelegraph contributor, Bitcoin is displaying “classic” behavior, and its trend remains upward due to the potential end of interest rate hikes by the United States Federal Reserve. Van de Poppe believes that Bitcoin will continue to reach $40K, but if there is a test of $25K first, he will be a buyer.
He also stated that as long as $27,900 holds, he expects Bitcoin to continue towards its range high and potentially reach $30K. In summary, Bitcoin’s recent dip is likely a temporary setback, and its upward trend is expected to continue, driven by macroeconomic factors and the potential for the end of interest rate hikes.
Several traders and trading resources are optimistic about Bitcoin’s future despite its recent dip. Stockmoney Lizards predicts that the cryptocurrency will hit $30,000 after a short correction, while Crypto Tony is confident that Bitcoin will remain in the upper half of its range as long as it holds at the equilibrium level of $27,700. Meanwhile, macroeconomic changes are also impacting Bitcoin’s performance. OPEC and 10 other oil-producing nations announced an oil production cut over the weekend, and weak U.S. economic data is pressuring the dollar. Trading firm QCP Capital believes that a recession is looming. Despite these factors, traders and experts remain positive about Bitcoin’s long-term prospects.
The US dollar and bond yields, both of which influence Bitcoin, fell sharply after the release of the ISM Manufacturing report, which showed the sharpest contraction since April 2020. While Bitcoin has the potential to benefit from market instability, it remains unproven as a safe haven during a recession, as demonstrated during last month’s banking crisis. The report speculates that if the Federal Reserve were to take quick action during a recession, as they did during the banking crisis, Bitcoin could experience a significant surge in value.