On May 19th, the price of Bitcoin returned to a level below the $27k mark as analysis indicated that the price was being pressured by trades involving large volumes. Data from cryptocurrency aggregator sites indicated a low point of $26,380 for the pair of BTC/USD on Bitstamp.
Bitcoin Price Haunted By The Specter Of Inflation
After falling to that low point, Bitcoin underwent a decent recovery that saw the price return to a more familiar range that was present a few days ago. The focus is still on, as the final open of the week in Wall Street approaches.
Overnight downside happened because of the expectations of the market increasing regarding a hike in interest rates that the US Federal Reserve might roll out in June. The hike is expected to take place because of the weekly data claiming reduced unemployment numbers as well as officials working with the Feds being hawkish about the matter.
Philip Jefferson, one of the board members, said that on one side, there was too much inflation and there has not been sufficient progress made in reducing it. He talked about the situation at the Washington D. C. International Insurance Forum 2023. He continued by saying that the year has seen a considerable slowing of the GDP, on the other side. As such, the effects of increased interest rates have definitely been felt by demand.
Material Indicators, a monitoring resource, displayed ask liquidity and bid owners placing trades in an attempt to manipulate the behavior of Bitcoin price over short periods of time. It further noted the Bitcoin/USD pair retesting the MA (moving average) of the past 100 days. This was the third time the retest took place over the previous week.