- Traders and experts await the next move amid a general lack of direction.
- MicroStrategy acquiring 4,000 BTC failed to have a lasting impact on the market.
Wednesday’s opening of Wall Street saw Bitcoin (BTC) fall below $44,000 for the second time in less than a month. At the end of the 12-day trading period, the price of BTC/USD on Bitstamp was $43,801, down almost 7% from the month’s peak.
MicroStrategy and Terra had just joined the fray, which should have acted as a positive catalyst for the increase, but experts were more focused on macro issues as the next possible driver of the BTC price.
Inflation and Interest Rates Key Factors
The U.S. Federal Reserve has said that “aggressive” balance sheet reductions will begin in May, signaling the end of the “easy money” policy, which many had worried would hurt demand for risk assets. Overseas, inflationary pressures persisted, with annual producer price inflation in the Eurozone reaching a record high of over 31% in February. In the years to come, readouts will be considerably higher than before the Russia-Ukraine conflict.
In a shaky market, analysts were willing to give the spot some wiggle room, asking for $44,000 to serve as a foundation for a positive move. Traders and experts await the next move of the biggest cryptocurrency amid a general lack of direction. Optimistic Twitter account CivEkonom cited a CME futures gap of $54,000 as a possible objective for further gains.
April will be bullish for #Bitcoin
— Crypto Rover (@rovercrc) April 6, 2022
Famous analyst Crypto Rover emphasized the importance of Bitcoin’s effort to break past the 200-day moving average. He cited examples in the past when this has led to substantial price increases. Despite the admiration from analysts, news that MicroStrategy had acquired almost 4,000 BTC failed to have a lasting impact on the market. However, analysts continue to expect Bitcoin to rise in April.
