Bitcoin Is Down for the First Time in 6 Months...but Why?
Article source, here.
TL;DR
Good news/bad news: Bitcoin is up ~$2k (from $25.9k to $27.8K) over the past week! But it's still down overall for the month of May - marking BTC's first down-month for the year.
Many investors believe the Federal Reserve isn't quite done with rate hikes - causing investors to tighten their purse strings and make safer bets (outside of crypto).
Which has left Bitcoin hovering around the same price it was back in March.
Full Story
Time for our bi-weekly-ish check in with Bitcoin and the crypto markets, where we have some good news...and some bad news.
The good news is: Bitcoin is up ~$2k (from $25.9k to $27.8K) over the past week!
The bad news is: it's still down overall for the month of May - marking BTC's first down-month for the year.
So what took the wind out of Bitcoin's sails?
You know how you'll tighten your spending if it looks like times are going to become tight in the near future?
(You eat out less, lower your spend on entertainment - that sort of thing).
The same goes for financial markets. If the future looks tight, investors move away from 'indulgences' like Bitcoin and crypto, and into safer/lower risk bets.
Over the past six months, everyone has been expecting the Federal Reserve to calm-the-hell-down re: interest rate hikes.
(Meaning the interest payments on our loans/credit cards would stop rising - giving us all more disposable income to play with).
This positive forward outlook inspired many investors to take risks on assets like Bitcoin, which has pushed its price up ~70% this year alone.
...but everyone is now starting to think the Federal Reserve isn't quite done with the hikes - causing investors to tighten their purse strings and make safer bets.
(Which has left Bitcoin hovering around the same price it was back in March).
Short term (looking back 6 months): it's not the best news, but Bitcoin is still up ~70%.
Long term (looking back 6 years): this is a pretty forgettable moment in Bitcoin's history...and BTC is up ~13x (!!!).