Bitcoin Falls Below $57,000 as Hopes of Recovery Fade

Bitcoin experienced a sharp decline on Wednesday morning, reaching its lowest level since the end of February at $56,556. Analysts point to several key factors behind the drop, casting doubt on a quick market recovery.

Bitcoin Plummets Below $57,000

Bitcoin was trading at $56,900 at the time of writing this article, according to CoinMarketCap data. The crypto market began a bearish trend shortly after the announcement of Binance founder Changpeng Zhao’s sentencing.

Alex Kuptsikevich, a senior analyst at FxPro, highlighted that the closing price of April 30th was the lowest since the end of February, confirming the bearish trend. The price fell below the supports of March and April, as well as below the psychological threshold of $60,000. The analyst does not foresee an immediate rebound for Bitcoin.

Over the past 13 years, Bitcoin has closed the month of May with gains seven times and with losses six times, with an average gain of 31.3% and an average loss of 14.5%. However, over the past three years, the month of May has seen an average decline of 20% for BTC.

Worrying Signals

Arthur Firstov, CEO of Mercuryo, notes that this tumultuous day highlights Bitcoin’s status as a risk asset, with a significant retreat in the crypto market as a whole.

Major altcoins such as Ethereum and Solana also suffered heavy losses. According to Firstov, the market could even serve as a leading indicator for traditional markets ahead of the Federal Reserve’s monetary policy decision. Now, traditional finance players closely monitor every Bitcoin movement.

The recent drop of bitcoin below $57,000 raises doubts about a quick recovery. Analysts emphasize a challenging economic context, a phase of natural correction, profit-taking, capital outflows from ETFs, and significant liquidations. The crypto market remains under pressure, and uncertainty prevails over the short-term evolution of Bitcoin’s price.