TL;DR
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Good News/Bad News: Bitcoin is up ~$2k (from $25.9k to $27.8k) in the past week! But it is still low overall for the month of May – marking BTC’s first down month of the year.
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Many investors believe that the Federal Reserve is not quite done with rate hikes, forcing investors to pull out their wallets and make safer bets (beyond crypto).
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As a result, Bitcoin continued to hover around the same price as in March.
Full story
Time for our bi-weekly check-in with Bitcoin and the crypto markets, where we have good news… and bad news.
The good news is: Bitcoin is up ~$2k (from $25.9k to $27.8k) in the past week!
The bad news is: it is still generally low for the month of May – marking BTC’s first down month of the year.
So what took the wind out of Bitcoin’s sails?
Do you know how to tighten up your spending when it looks like times are going to get tight in the near future?
(You eat out less, cut your entertainment spending – things like that).
The same goes for the financial markets. When the future looks tight, investors are moving away from “indulgences” like Bitcoin and crypto, and turning to safer, lower-risk bets.
For the past six months, everyone expected the Federal Reserve to calm down on: rate hikes.
(Which means interest payments on our loans/credit cards will stop rising – giving us all more disposable income to play with).
This positive outlook has inspired many investors to take risks with assets such as Bitcoin, which has seen its price rise ~70% this year alone.
…but everyone is now starting to think that the Federal Reserve isn’t quite done with the hikes yet – causing investors to tighten their pockets and bet more safely.
(Leaving Bitcoin hovering around the same price as in March).
Short term (looking back at 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 history… and BTC is up ~13x (!!!).
