• Bitcoin (BTC) price climbs to a new May high of $29,529.
• Ongoing market jitters from the U.S. banking crisis impacts investor sentiment.
• Traders eye a possible rematch with $30,000 and higher.
Bitcoin Price Sets New May High Above $29,500
Bitcoin (BTC) bulls slowly clawed back lost ground on the road to a $30,000 rematch as the U.S. banking crisis lingered on May 5th. Market data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it spiked to a new May high of $29,529 on Bitstamp exchange.
U.S Banking Crisis Impacts Market Jitters
As stocks opened at Wall Street the day prior, BTC/USD dipped in response due to market jitters from the ongoing U.S banking crisis which has now impacted several regional banks according to Whalewire’s Twitter account. Financial commentary resource The Kobeissi Letter weighed in on the potential for this fallout to continue to ripple outward noting; “Today is the first day since March that markets are taking the banking crisis seriously”.
Interest Rates & Next Rate Decision
Following Federal Reserve Chair Jerome Powell’s statement that the US banking system was stronger than ever, The Fed raised interest rates this week leading market expectations to pivot towards predicting an end of hiking cycle by mid-June according to CME Group’s FedWatch Tool – which states no further shift higher is expected at their next rate decision due in June 2021.
Traders Eye Breakout Beyond $30K
With support at $29K holding up, traders surveyed what it would take for BTC/USD reclaiming further lost ground with a rematch at $30K or higher still in play – with one trader suggesting a best case scenario of reaching as high as $32K before any profit taking takes place .
Bitcoin remains resilient despite ongoing market jitters caused by US banking crisis and rising interest rates leading traders looking for breakout beyond 30k benchmark level and potentially even as high as 32k if current conditions remain favorable for crypto Bulls