Despite losing territory for seven of the previous eight days, Bitcoin (BTC) climbed back over $40,000 on Tuesday, April 12, regaining some ground after recently falling below that mark.
Due to historically high inflation and ongoing geopolitical uncertainty, Bitcoin and the larger cryptocurrency market have suffered in recent weeks, as the Federal Reserve started raising interest rates in response.
Economists polled ahead of the release of statistics on Tuesday expect that inflation in the United States will have increased to 8.4% in March, the strongest rate since early 1982.
According to Goldman Sachs Group Inc. Chief Economist Jan Hatzius, the Federal Reserve may be forced to hike interest rates “significantly” higher than it currently forecasts in order to calm an unsustainable U.S. economy.
Bitcoin price analysis
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Currently, Bitcoin is trading at $40,266, down 4.77% on the day and 13.66% in the last week after seeing a steady climb up until the Bitcoin 2022 conference in Miami, according to CoinMarketCap.
Bitcoin 1-day price. Source: CoinMarketCap Interesting, prominent crypto trading analyst Michaël van de Poppe pinpointed the $40,000 mark as an important level for BTC “while equities are also still dropping. Let’s see. I’d like to see a reaction here. Other crucial levels if lost; $38K Sub $33K.”
Bitcoin chart levels. Source: Van de Poppe Equities correlated to yields
Notably Lead Insights Analyst Will Clemente noted the fixed-income market is selling off aggressively, with the 10-year yield breaking out of a multi-decade long downtrend.
“Equities are generally inversely correlated to yields because of DCF models. The higher the 10Y yields, the lower equity valuations go.”
10y yield. Source: Will Clemente
Clemente highlighted this is putting pressure on equities, especially the Nasdaq. Tech stocks as Finbold reported are ‘feeling the heat’ as US 10-year yields rise to the highest level since 2019
According to the analyst:
“This roll over in tech is effecting BTC as well. Whether I agree or not, the market appears to be viewing BTC as a high beta play on tech, trading at an increasing correlation over the last month.”
Bitcoin vs US Dollar. Source: Will Clemente In his opinion personal view, he sees closing above $47,000 as momentum and still sees the low $30,000 as value.
