The global crypto market cap reached $2 trillion, with a 2% increase in 24 hours, signaling positive Bitcoin price predictions. The recent decision by the Federal Reserve to pause interest rate hikes has impacted financial markets and softened the US dollar, leading to higher Bitcoin prices. While immediate rate cuts are not expected, the possibility remains open for future adjustments that could affect market dynamics. Traders are eagerly awaiting the upcoming Non-Farm Payrolls (NFP) report, with expectations of 243,000 new jobs added in April and a slight decrease in Average Hourly Earnings growth.
The M2 Money Supply in the US has shown positive growth for the first time since November 2022, indicating increased liquidity in the economy. This has prompted investors to consider assets like Bitcoin, which historically perform well during inflationary periods. Despite sell-side pressure throughout April, Bitcoin has shown market resilience, trading at around $59,140 at the time of writing. Prominent traders like Oliver L. Velez and InvestAnswers have expressed bullish sentiments, advising followers to view price dips as buying opportunities and anticipate significant performance gains for Bitcoin.
The shift in the M2 Money Supply has reinforced Bitcoin’s stability and led to optimistic price predictions. Arthur Hayes, the former CEO of BitMEX, predicts a steady increase in Bitcoin’s price to $70,000, signaling optimism for the cryptocurrency’s future. He suggests that Bitcoin may have found its local bottom and could stabilize between $60,000 and $70,000 until August. Hayes attributes recent market dynamics to factors such as U.S. tax season pressure, the outcome of the FOMC meeting, and the upcoming Bitcoin halving event.
Industry experts like Jeff Ross from Vailshire Capital Management and analysts at MatrixPort also see the potential for a bullish phase in the market, following Bitcoin’s typical post-halving sideways movement. The Federal Reserve’s tapering of quantitative tightening and increased debt issuance by the U.S. Treasury further support a positive outlook for cryptocurrencies. Overall, the market dynamics and economic context suggest that Bitcoin could see a bullish trend in the near future, with the potential for significant price gains. As liquidity increases and more traders hedge against inflation, Bitcoin’s market value is expected to rise.
