Bitcoin price pushed ahead as the United States Treasury Secretary Janet Yellen reinforced the support of the Federal Reserve. The popular cryptocurrency started a recovery wave above the resistance zone above $20,000 but fell short. It attempted to breach the crucial $20,500 mark but failed as well.
At the time of writing this article, BTC was up 0.86% and trading at $20,613. It has once again failed to break above the $22,000 resistance. As such, most traders are suppressing their bullish expectations and waiting for Bitcoin to close above $24,000. Ethereum is changing hands at $1,204 and has gained 1.45% in the last 24 hours. There is a mixed reaction in the broader crypto market with reds and greens.
Analysts pointed out that BTC’s correlation to the S&P 500 remains incredibly high. But investors fear a potential crisis in the global financial sector will retest June 18’s $17,600 low. The 30-day correlation between S&P 500 and Bitcoin stands at 0.87. This has been persistent for the past four months. There is volatility in the market following the release of June’s inflation data – which gained 1.3% and is now 9.1%. If the Fed raises interest rates, the prices could take another hit.
Moreover, Finder.com expects Bitcoin to drop below the $15,000 level to $13,676. Experts believe the popular cryptocurrency is likely to end the year at $25,473. This is aligned with the 80% drop theory – Bitcoin has lost more than 80% from the all-time price high during every major bear market. Martin Froehler, CEO of Morpher, sees BTC hitting $12,000. And he expects the major crypto to bounce back to $40,000 by the year-end. Froehler said it wouldn’t be surprising to see more big projects failing in the next couple of months. He pointed out that retail sentiment is at historic lows owing to rising inflation and the ongoing Russo-Ukraine war. Lower BTC prices are expected.