• Bitcoin (BTC) price sets new May high above $29.5K as traders eye breakout
• US banking crisis impacts regional banks and stocks, BTC/USD recovers from dip
• Traders predict potential for a rematch with $30K and beyond
Bitcoin Price Reaches New High
Bitcoin (BTC) set a new May high at $29,529 on Bitstamp as traders eye the potential for a breakout towards $30,000. The BTC/USD pair had dipped earlier in the day as US equities opened but regained ground relatively quickly.
US Banking Crisis Lingers
The ongoing market jitters from the US banking crisis were evident, with all regional banks seeing their stocks in the red. This came after Federal Reserve Chair Jerome Powell stated that the US banking system was stronger than ever. According to CME Group’s FedWatch Tool, there is no expectation of an interest rate change at the mid-June meeting.
Traders Eye Potential for Higher Prices
As BTC/USD recovered from its dip, traders began to eye higher prices with some predicting a return to $30K and beyond. Arthur Hayes commented on this situation via Twitter while other commentators noted how market expectations may pivot away from further interest rate increases given current conditions.
Longterm Outlook Remains Bullish
Despite some short term dips which have been seen recently due to market uncertainty, many remain bullish on Bitcoin’s longterm outlook. With institutional investors continuing to pour capital into cryptocurrencies and more individuals now becoming familiar with digital assets, Bitcoin’s fundamentals appear strong for continued growth throughout 2021 and beyond.
Despite some lingering uncertainties related to the US banking system impacting regional banks and stocks, Bitcoin appears set for further gains in 2021 despite some short term ups and downs along the way. As more people become familiar with digital assets and institutional investors continue pouring capital into crypto markets, it appears likely that Bitcoin will see further price appreciation in the months ahead.