One of the most common questions about Bitcoin’s price is whether or not this is the bottom for cryptocurrency and if this is a good time to buy the dip. According to Wall Street analysts, the Cboe Volatility Index (VIX) fear gauge signals that the bottom may not be so near. Since Bitcoin has been closely following the stock market action, especially NASDAQ, BTC could dip below the $30k levels once again. However, after the bloodbath last night, Bitcoin is seeing significant support levels keeping the cryptocurrency above water.
The good news is that things are looking better today. Let’s look at any relevant news and make a prediction for Bitcoin price moving forward.
Biden Speech Addresses Inflation
One of the primary reasons for the recent price drop for Bitcoin and stock markets is the rising inflation rates and the Fed increasing interest rates at unprecedented levels.
President Biden delivered remarks regarding the current financial situation in the United States, stating that inflation is his top domestic priority.
President Biden said:
“I want every American to know that I’m taking inflation very seriously and it’s my top domestic priority, and I’m here today to talk about solutions.”
When it comes to tackling inflation, Biden said he plans to lower everyday costs for hardworking Americans and lower the deficit by asking large corporations and the wealthiest Americans to not engage in price gouging and to pay their fair share in taxes.
Biden criticized the Republican plan to increase taxes on middle-class families and let billionaires and large companies off the hook as they raise prices and reap profits in record numbers.
While criticizing other policies is a political move by the president, the good news is that inflation is Biden’s primary priority, and hopefully, we will the economy start its return to normal.
In related news, tomorrow, May 11th, Consumer Price Index numbers are scheduled to come out, which should clarify whether inflation is slowing down. For those not familiar with CPI numbers, they are a measure of the average change over time in the prices of consumer goods. Increased CPI numbers mean increased inflation and vice versa.
Australia Adds Bitcoin ETF
In international news, Australia is set to add cryptocurrency ETFs on May 12th, enabling access to millions of users to start investing in crypto. The crypto ETFs include a Bitcoin spot and Ethereum options, which could signal tremendous buy volume for cryptocurrency markets as Australians rush to buy assets at such a low price.
The upcoming ETFs will attract a significant amount of investors to cryptocurrency and open up the doors to billions in funds that could flow as buy volume to Bitcoin and Ethereum.
Since most altcoins follow BTC and ETH price movements, this could cause a cascade effect of bullish recovery for the overall crypto market capitalization.
Bitcoin Price Prediction
After a bloodbath on Monday, the markets are looking relatively healthy, potentially signaling a reversal coming soon. Whales continue to accumulate Bitcoin, and holders are stronger than ever, even after BTC hit a low of $29k.
In addition, the long-term outlook on Bitcoin, Ethereum, XRP, and other cryptocurrencies is exceptionally bullish, with many analysts claiming Bitcoin price could easily surpass $100k in a few years.
If the United States can curb inflation and reboot its economy, Bitcoin could recover extremely fast and see significant price growth this summer. However, if inflation continues and the market heads into a recession with stock prices continuing their bearish momentum, the new norm for Bitcoin could be the $20-$30k level.
Overall the best strategy right now is to HODL & DCA (Dollar-Cost Average) and take advantage of the low prices that we will likely not see for many more months.