• 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.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP