At $30,325 over the weekend, Bitcoin (BTC-USD) will book a solid weekly gain of around 9%. Breaking past the $30,000 resistance level would undermine naysayers who are skeptical about the cryptocurrency market.
The correlation between Bitcoin, the Federal Reserve interest rate policy, and stocks returned. When markets expect the Fed to stop raising interest rates in June 2023 after a hike in May, it loosens credit conditions. This encourages speculation.
Crypto generally thrives when speculation rises. Look for Ethereum (ETH-USD), a widely held crypto, to climb with Bitcoin. Other cryptocurrencies may rise, too.
Big Whales in a Small Pond
Crypto investors should speculate that “big whales” hold large positions in crypto. Their buys and sells will move crypto prices. Retail speculators who bid crypto prices higher are at risk of attracting those big investors to sell. When they take a profit, crypto prices could fall dramatically. Last year, crypto prices swung the most on Friday, after the stock market closed. Volatility increased by Sunday, on the downside.
Risks
The SEC wants all crypto exchanges and decentralized finance platforms to register. The SEC’s intervention is an ongoing risk for crypto prices.
Bottom Line
The Bitcoin bust ended months ago. A sell-off could return at any time.
