Bitcoin (BTC) fought for $28,000 support on May 2 after the month opened to multiday lows.
BTC price: “Big volatility on the horizon”
The previous day’s Wall Street open had brought the latest wave of downside volatility, with the pair dipping below $27,700.
This followed a leg lower immediately after the weekly and monthly close, with $30,000 and upward feeling increasingly out of reach.
Market participants’ BTC price targets reflected the mood. Michaël van de Poppe, founder and CEO of trading firm Eight, argued that a rematch with both $25,000 and $30,000 was still on the table.
“Nothing is for certain, but sweep done on Bitcoin,” he told Twitter followers about the latest lows.
“Breaking through $28.4K and we could be back to $30K in a few days. Not breaking and folding coming days, $25K next. Big volatility on the horizon.”
Referring to the May 3 Federal Reserve decision on interest rate policy, a further post described Bitcoin as being “in sideways territory, where bears and bulls have arguments for both biases.”
“Lots of fear going into the event of the FED tomorrow, probably unwarranted, but we’ll see. Expecting slightly deeper,” Van de Poppe added.
Bank stocks squeeze fails to inspire crypto
In terms of the Fed event itself, little was left to the imagination, with market sentiment beyond crypto pricing in an almost guaranteed 0.25% rate hike.
The odds on May 2, according to CME Group’s FedWatch Tool, stood at 97.4%.
This would copy the Fed’s March decision, which was accompanied by trouble in the United States banking sector.
May 1 saw multiple local lenders shed value in an environment strongly reminiscent of six weeks prior. However, unlike then, however, Bitcoin appeared in no mood to capitalize on the fallout.
US Regional Bank Stocks Today:
1. Valley National, $VLY: -20%
2. Metropolitan Bank, $MCB: -18%
3. HomeStreet Bank, $HMST: -18%
4. HarborOne, $HONE: -11%
5. PacWest, $PACW: -10%
6. Citizens Financial, $CFG: -7%
7. Zions Bank, $ZION: -4%
8. KeyCorp, $KEY: -4%
9. M&T Bank, $MTB:…
— The Kobeissi Letter (@KobeissiLetter) May 1, 2023
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