Nonetheless, some on Wall Street believe that Bitcoin will recover. JPMorgan’s Nikolaos Panigirtzoglou said last month that he sees about 30% upside for the cryptocurrency after the recent washout.
Some Fed members have said raising interest rates could continue past this summer, Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank, noted.
“How much a 50bp rate hike by the Fed in May could suppress prices is still uncertain,” said Hasegawa. “So it will be difficult to open new positions until Friday’s CPI announcement. In other words, bitcoin could continue to fluctuate sideways until then, but the market should brace for impact.”