Gripped by macroeconomic pressures, the crypto market dive at the end of April has put investors in a fix, with inflation data to be released soon.
Bitcoin took a further dip as May started, falling below $29000 and inching toward $28000. It found support around the $28500 level and has currently stabilized around the same level. Predictions for the upcoming movements of the crypto market could be difficult to presume, considering macroeconomic pressures seem far from over.
The crypto market dive could be a result of the First Republic Bank crisis. Though efforts to save the bank are ongoing at a war footing, the impact of the crisis could trickle down to the crypto market as well.
Long-term proponents of crypto are still bullish on the market, with Bitcoin registering a further gain in April as well. In spite of staggering inflation and interest rates across the world, Bitcoin has continued to remain resilient throughout 2023.
The current crypto market dive could be temporary, as the present levels of the market could be an opportune time for the re-entry of several traders. On the downside, several altcoins, including ETH, had seen losses in the last 24 hours. Polygon, Dogecoin, Cardano, Polkadot, and others saw small losses ranging between 2% to 5%.
BTC/USD 1D price chart
Bitcoin is currently trading at around $28500 on May 1, 2023, with BTC/USD down by almost 2.43% in the previous 24 hours. The bearish signals presently prevalent after the crypto market dive could return to positive trends if the next interest rate hikes remain favorable to the market. BTC/USD is trading below its 20-day EMA (28,913.69) as its 24-hour volume went higher to around $19 billion.