Although the prediction made by venture capitalist and former CTO at cryptocurrency trading platform Coinbase Balaji Srinivasan that Bitcoin (BTC) could soon reach the price of $1 million is considered overly enthusiastic, historical trends indicate the flagship decentralized finance (DeFi) asset could still kick off a significant rally.
As it happens, after the United States Federal Reserve paused its interest rate hikes in 2018, Bitcoin responded by trending up, and now the crypto market is pricing in the possibility that the same could happen in May this year, according to a tweet by the crypto analyst Seth published on March 30.
Specifically, as the expert explained using the Bitcoin vs. U.S. interest rate chart:
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“There is a probability that like in 2018 when we get a pause in the US interest rate, then Bitcoin starts to trend up! The market is pricing in a FED rate Pause in MAY! Are you ready for a [High Time Frame (HTF) uptrend?”
That said, while many cryptocurrency experts agree that Bitcoin has strong bullish energy, especially in light of the upcoming halving event, which will take place in the first half of 2024 and has historically led to spikes in the price of the maiden digital asset, the InTheMoneyStocks.com Chief Market Strategist Gareth Soloway believes it could first plummet back to November 2020 levels at around $13,000.
Bitcoin price analysis
As things stand, Bitcoin is currently trading at the price of $28,688, which represents an increase of 1.15% on the day and a 4.51% gain across the previous week, adding up to the 21.98% advance on its monthly chart, as per the latest data retrieved by Finbold on March 30.
Notably, Bitcoin has shown resilience amid increased regulatory scrutiny over the industry, recently adding nearly $30 billion to its market capitalization in a single day, indicating a positive momentum that could lead its price toward surpassing the $30,000 psychological level.
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