Although Bitcoin experienced a tremendous rise from January to April, it has been on a downward trend since mid-April.
Recently, BTC has risen above $ 28,000, causing investors to hope for a bit, while Bitcoin started the day with a sharp decline, when the monthly closing will take place.
Some analysts stated that this decline was caused by investors liquidating their assets as a result of BTC closing a month lower for the first time in 2023, that is, closing with a red candle, and the hawk statements of Cleveland FED Chairman Loretta Mester.
Evaluating Bitcoin's performance after this decline, Ava Labs Inc. President John Wu spoke to Bloomberg.
He stated that the US banking crisis resulted in his distrust of fiat currency and that investors turned to BTC and cryptocurrencies, which brought a rise to Bitcoin.
Wu continued, saying that this is a temporary boost for Bitcoin and the crypto market as the authorities stabilize the financial sector:
“What really needs to happen for him to get a new wave of Bitcoin and cryptocurrency purchases is to show real benefit and development to get crypto-savvy people into the crypto ecosystem.
So it should be an innovative and utilitarian development."
On the other hand, Caroline Mauron, co-founder of OrBit Markets, also evaluated the impact of the temporary agreement and negotiations on the debt limit in the USA on BTC.
Caroline Mauron told Bloomberg that investors are currently assessing the consequences of the US debt limit agreement, which should be concluded before June 5, when the US is already at risk of default.
“Liquidity effects tend to be more visible in the longer run.
At this point, large Treasury issues that could follow the deal are unlikely to significantly affect the price of Bitcoin in the short term.”
*Not investment advice.