Bitcoin’s (BTC) price is hovering near $80,000 U.S. as markets await a series of interest rate decisions by central banks around the world.
In early trading on April 29, Bitcoin is trading at $77,000 U.S., the same level it has been at for the past 24 hours.
Analysts and traders say the largest cryptocurrency by market capitalization is waiting for direction on the likely direction of interest rates.
Some analysts have issued notes saying that Bitcoin is likely to retest its recent high of $80,000 U.S. once the interest rate hurdle is cleared.
Later on April 29, central banks in the U.S. and Canada are expected to announce their latest moves on interest rates.
The Bank of Japan, Bank of England, and European Central Bank are also issuing interest rate decisions this week.
As a risk asset, crypto, like stocks, tends to rally when interest rates are lowered. However, expectations for rates to move lower in the near-term have been dashed by the Iran war.
With crude oil prices steadily rising and now well above $100 U.S. a barrel, most central banks are expected to hold interest rates at current levels.
Higher energy prices are widely expected to spark a rise in inflation that will make it difficult for central banks to lower interest rates anytime soon.
The next move by many central banks might be to raise rates later this year to help lower inflation, say some analysts.
Still, Bitcoin is expected to benefit from clarity on the interest rate front and could finally break through resistance at $80,000 U.S., especially if stocks rally higher.
BTC has risen from a low of $60,000 U.S. seen in February of this year, with some crypto bulls saying the worst is now over for digital assets.
