In this article, BeInCrypto shares expert Bitcoin (BTC) price predictions for May 2023 and the hurdles the cryptocurrency may face this month.
Bitcoin Price Forecast: Expert Opinions
Independent financial expert Alexander Ryabinin believes that “May for Bitcoin, like April, will be difficult and interesting.” In his opinion, the main task on the path of Bitcoin (BTC) The $30,000 level will be maintained.
Bitcoin forecasts for the month of May from our experts include two scenarios:
- Bitcoin holds $30,000 and exits higher by the middle or end of May. This means that Bitcoin is in the long-awaited stage.
- Bitcoin will not be able to hold $30,000 and will drop below it. This means that the accumulation will continue for at least several months.
Also, Dmitry Noskov, an expert at cryptocurrency exchange StormGain, gave his Bitcoin forecast for May 2023.. In his opinion, the path is open for BTC to reclaim the $30,000 level, with the potential for further penetration as the market prepares for the upcoming halving of 2024.
At the same time, our expert notes that the currency is under pressure from US regulators. According to Noskov, cryptocurrency crackdowns from regulatory authorities could definitely become the main hurdle for BTC to trade above $30,000 in May 2023.
Alexey Bosov, entrepreneur and co-founder of the Cryptobaron community, made the most positive May prediction about Bitcoin.
“In May, the price of bitcoin will definitely continue to rise, possibly reaching $35,000-$36,000. This is mainly beneficial for market makers who buy at low values and sell at peaks. No drop in the price of bitcoin is expected in the next two to three weeks: It is important Large players bring new entrants into the market. This was the reason for the sharp increase from $17,000 to $30,000.
However, Busov believes that another crash may await the cryptocurrency market at the beginning of summer.
Bitcoin forecast with focus on halving and date
Traditionally, May is not the best month for Bitcoin. Statistics show that since 2011, Bitcoin has performed poorly compared to other months.
At the same time, Bitcoin price forecasts for the month of May, focusing on the cyclical theory, point to the potential for the currency to grow.
In the cycle following the 2020 halving (green curve), BTC has largely followed a similar pattern to the 2016 halving (blue curve). If the cryptocurrency continues to move along the path of the previous cycle, the coin will be able to create a local high.
The prospects for the cryptocurrency largely depend on the actions of the US financial regulators. according for bloombergAs part of the fight against inflation, the Federal Reserve (Fed) intends to continue raising its key interest rate, despite the growing pressure on the economy.
Against the background of a prolonged increase in interest rates, the US banking system experienced a series of bankruptcies. Over the weekend, First Republic Bank became the latest victim of the US banking crises.
The next meeting of the regulator is scheduled for May 3. Based on its results, the US Federal Reserve’s Federal Open Market Committee (FOMC) will announce the next decision on the key interest rate.
At the time of this writing, more than 90% of the market participants expect It raised interest rates by 0.25 basis points in early May. Increasing pressure in the traditional financial market could negatively affect Bitcoin.
In parallel, the Federal Reserve continues to increase the size of its balance binding. The cryptocurrency market is growing with the increase in quantitative easing or money printing.
The March series of bankruptcies in the banking system led to a temporary increase in the balance sheet. BeInCrypto reported that the Federal Reserve has injected more than $300 million into bailing out the banking system.
On the back of the Fed running the “printing press”, BTC breached the $30,000 level.
The Bitcoin forecast for the month of May largely depends on whether the collapse of the First Republic Bank will be the cause of another increase in the balance sheet of the Federal Reserve and whether there is a risk of new bankruptcies in the financial market.
Results: Bitcoin forecast for May 2023
Experts interviewed by BeInCrypto editors gave a somewhat optimistic forecast for Bitcoin for May 2023. The cryptocurrency market is under pressure from the Fed. In particular, we are talking about the main interest rate. The next decision on the scale will be announced on May 3.
The increase in the federal interest rate and the prolonged struggle of regulators with inflation put pressure on Bitcoin. Therefore, the prospects for further growth of the cryptocurrency are limited.
The history of BTC’s behavior allows us to give a positive forecast for Bitcoin for May 2023. During this period, four years ago – after the halving in 2016 – the cryptocurrency was heading towards a local maximum update.
At the same time, it is important to note that the market situation is different from previous cycles for the worse. Therefore, Bitcoin will likely spend May 2023 struggling to make further advances.
Get the latest version of BeInCrypto bitcoin (BTC) analysis, click here.
In accordance with Trust Project guidelines, this opinion article presents the author’s view and may not necessarily reflect the views of BeInCrypto. BeInCrypto remains committed to transparent reporting and upholding the highest standards of journalism. Readers are advised to independently verify information and consult with a professional before making decisions based on this content.