The price of Bitcoin plunged to an intraday low of $40,269 earlier today on the Bitstamp exchange.
The flagship cryptocurrency is down roughly 4% over the past 24 hours. It is now precariously close to retesting the $37,000 support level.
The U.S. dollar index (DYX) has rallied above 100 for the first time since May 2020 amid the U.S. Federal Reserve's hiking cycle. The greenback's ongoing rally highlights strong risk-off sentiment.
Goldman Sachs believes that the Fed will raise the benchmark interest rate by 50 basis points in May and in June in order to bring down inflation.
Mike Novogratz recently predicted that the Bitcoin price could rally again if the Fed were to put monetary tightening on pause. However, the central bank might not change its course anytime soon due to persistently high inflation.
Alex DovbnyaThe price of the top cryptocurrency is currently down 41.43% from its record peak. Bitcoin is still up 23.25% from its 2022 low of $32,950.
Last week, veteran trader Peter Brandt opined that the next bull market cycle might not start until 2024.
Arman Shirinyan
Vladislav Sopov
Dan Burgin