• Bitcoin price continued its upward trend post US Federal Reserve’s 25 bps interest rate hike.
  • Collapse of US banks and decline in US equities is fueling the asset’s price rally to its bullish target of $35,000. 
  • Macro uncertainty and possibility of future rate hikes has failed to deter market participants from pushing BTC higher. 

Bitcoin price has resumed its upward trend post the US Federal Reserve’s 25 basis point (bps) interest rate hike. Experts like BitMEX CEO Arthur Hayes have noted the impact of failure of US banks on Bitcoin’s uptrend. 

Also read: GAL, DYDX, APT and BIT token unlocks are lined up in May amidst key macro events

Catalysts driving Bitcoin price higher 

Bitcoin price resumed its uptrend towards its $35,000 target with key macro data releases this week. The US Central Bank announced a 25 bps interest rate hike on May 3, in line with the expectations of market participants. Bitcoin and altcoin prices reacted positively to the announcement. 

BTC climbed to the $29,000 level, in continuation of its price rally. There were fears of macroeconomic uncertainty and BTC price declining in the event of a higher rate hike, however the Central Bank’s decision fueled the bullish thesis for the risk asset. 

The second key catalyst is the collapse of US banks. BitMEX founder Arthur Hayes highlighted that the collapse of the banking system and failures of banks like FRC have paved way for capital to rotate in risk assets. 

Hayes told his 377,400 Twitter followers that he is shorting US bank related stocks, in anticipation of gains and further price rally in Bitcoin. Hayes’ thesis points at capital rotation out of declining US equities and into BTC. 

While Bitcoin and US equities enjoyed a relatively high correlation throughout 2022, it dwindled in the beginning of 2023. Bitcoin price continues its uptrend despite a decline in US equities as the two assets fall out of correlation and BTC yields gains for its holders. 

Why Bitcoin price rally to $35,000 is likely 

El Crypto Prof, a technical analyst and Bitcoin trader evaluated the BTC chart and applied the Mayer Multiple Indicator to it. The Mayer Multiple is an oscillator that calculates the ratio between price, and the 200-day moving average. 

The long-term moving average is widely recognised as an indicator for identifying a macro bull or bear bias among crypto market participants. The expert notes that Bitcoin price stayed above the band in the chart below, and the line plays a key role in BTC’s price trend. 

BTC/USD 1W price chart

BTC/USD 1W price chart

The expert has identified the next strong resistance for Bitcoin at $37,000. The analyst remains bullish on Bitcoin.


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