Bitcoin (BTC) prices are firm on April 27, and trading above $29,000 as the coin broke out from a recent consolidation.
The BTC upswing happens less than a day after it lost $2,000 on news that bitcoin wallets linked to Mt. Gox, a defunct cryptocurrency exchange; and the United States, one of the largest bitcoin holders controlling coins confiscated from, among other illicit activities, Silk Road, had “moved” coins.
Bitcoin prices volatile
At spot rates on April 27, bitcoin buyers appear to be in control, rejecting attempts for lower prices and building on the Doji bar registered on April 26.
A Doji candlestick is a bar that chartists associate with indecision. This was observed yesterday as BTC momentarily rallied to as high as $30,000 before contracting to $28,000 before bouncing higher.
Bulls picked on the volatility of the New York session, pumping the coin back toward $30,000. A notable development is a spike in trading volumes pointing to more market participation. Among traders or investors who can move BTC prices are whales.
Bitcoin whales are individuals, primarily entities, who typically hold over 100 BTC and regularly engage in the market. That bitcoin prices edged lower on April 26 because “whale” bitcoin wallets linked to Mt. Gox and the United States government bluffed the market points to how influential they are.
Arkham Intelligence clarified that an alert sent out on April 26 was in error and that there had not been any registered movement of bitcoin from the United States government or Mt. Gox.
When whales dump coins, prices usually fall as a result of the oversupply. However, since Arkham said the alert was sent in error, bitcoin prices recovered steadily and are firm at spot rates.
Fed to raise interest rates?
Bitcoin prices could even edge higher on unverified news that Jerome Powell, the chairperson of the Federal Reserve (Fed), fell for a prank call and revealed that the central bank would increase interest rates two more times.
It was not immediately clear precisely when the Fed will increase rates. However, news that the Fed could, after all, increase rates amid a fragile banking system in the United States could support bitcoin prices in the immediate to medium term.
In March, the bitcoin boom coincided with news of the Fed raising interest rates despite three banks collapsing, including Silicon Valley Bank (SVB) experiencing a bank run. Most of their woes, analysts said, are pinned to the hawkish regime maintained by Jerome Powell and the Fed.