Bitcoin price and value in May haven't been the best since the year began. It closed the month at over 7% on the negative. This is the first time the apex cryptocurrency will reach such levels since December 2022. Also, the end of May marked one of the worst months the cryptocurrency has experienced after the collapse of cryptocurrency exchange FTX triggered a 16% price drop last November.
The unexpected collapse of the failed crypto exchange has slowed down Bitcoin movement predictions and has made the crypto market go through one of the worst bear markets. It saw many crypto firms and establishments go down the drain in bankruptcy.
After the end of May, speculations are already going around on what will become of the apex cryptocurrency, Bitcoin. Experts have already started drawing Bitcoin movement predictions based on what happened in the past years.
However, when Bitcoin price movements are compared with those of the last two years, this year's price depreciation has improved for the better. In May 2023, Bitcoin only dropped about 7% in price value. But in 2021 and 2022, the most valued cryptocurrency lost 35.38% and 15.56%, respectively.
In its 24 hours, Bitcoin is still trading in the negative at the time of writing. Experts say the significant contributors to the current Bitcoin situation are the macro headwinds of the US dollar rising on stronger-than-expected US job openings data. In addition to this, Fed's hawkish rates are affecting many cryptocurrencies in the negative.
Bitcoin price movements showed the apex cryptocurrency had rejected a test of its 50-Day Moving Average. Due to this, the highs it recorded in March and April, where it almost reached $30k, have been hit with a downtrend.
Bitcoin Price Speculation for June
From its historical data, June is not always a good month for Bitcoin, as its price usually depreciates within this period. Since 2011, the price appreciation average for Bitcoin has always been low in June. While other months have a higher price appreciation rate, the Bitcoin price increase in June is much lower. Averaging about a 7% increase in June, only months like August and September have weaker price appreciation rates.
On the other hand, the Bitcoin price trend for June in the past three years has been far below average. Bitcoin price appreciation within the past three years has been below an underwhelming 15.6%. That doesn't mean that experts predict a price drop similar to this in June this year.
However, a good look at the Bitcoin chart shows the cryptocurrency isn't ready to change the narrative. The price and value of Bitcoin are still expected to go down to what was seen in late May. According to chart analysis, Bitcoin is currently in a medium-term downtrend, and this was caused by several macro factors that aren't going in the cryptocurrency's favor.
US jobs, service sector (PMI), and inflation data have turned out worse than expectations predicted, and this rules off the chance of the Fed reducing interest rates. This, in turn, is having a very negative effect on cryptocurrencies like Bitcoin. With rising inflation, it is more likely that the federal government will hike up the interest rate. Assuming a rate hike, Bitcoin price might go on a spiral fall.