The largest cryptocurrency in the world, Bitcoin (BTC), which recently touched an 11-month high at $30,000 is again trading in a limited range around the levels of $26,250. However, there is a strong hope now that BTC might regain its levels and touch $30,000 or above in the time to come amid strong macroeconomic conditions.
So what should you do if you are currently invested in Bitcoin? Should you run a mile or have high hopes that Bitcoin will bounce back soon to its highest levels soon.
Through this detailed read, we explain what investors must do in Bitcoin which is still trading 50% less than its highest peak.
What Is Happening to Bitcoin?
2023 looks like quite a tumultuous year for the king of cryptocurrency, Bitcoin (BTC). Bitcoin, which touched its eleven-month peak last month at $30,000 and is now trading again at $26,250 levels, reported a fall of nearly 2% in the past week.
Post the aftermath of the FTX downfall and a banking crisis in the U.S, Bitcoin has been able to cope up amid immense market pressure and global uncertainty. Even when the current inflation data from the U.S. is improving and showing signs of moderation and giving the Federal Reserve an opportunity to pause interest-rate hikes soon, there are no specific signs of rally seen in Bitcoin
In mid-May, Bitcoin prices surged a little bit after ease in inflation data in the U.S., which slipped below 5% from a year ago, giving major hope that the trend is going to be lower and moderate. The consumer price index (CPI) in the U.S, which measures the cost of goods and services, also rose 0.4% for the month and in line with market expectation. However, these major macroeconomic factors also could not push Bitcoin near or beyond $30,000.
Moreover, the weakening inflation data from the UK and the monitoring debt ceiling negotiations in the U.S. has pulled the equities as well as cryptocurrencies down. Even the ambiguity over the pause in ongoing interest rate hike in the U.S., failed to instill confidence in the market.
Post the last year’s deadly November crash, when Bitcoin was hovering around in the range of $16,000-$18,000 levels, it has now rallied nearly 80%; but is still on the flip side. BTC is still almost trading 50% less in value since it reached its all-time high at $69,000 in November 2021.
Here’s how BTC’s current price has slumped from its high point over the past one year
