Bitcoin suffered a sharp decline on Wednesday morning, reaching its lowest level since late February at $56,556. Analysts cite several key factors at the origin of this fall, casting doubt on a rapid recovery of the market.
Bitcoin drops below $57,000
Bitcoin was trading at $56,900 at the time of writing, according to data from CoinMarketCap. The crypto market began a downtrend shortly after the announcement of the conviction of Changpeng Zhao, founder of Binance.
Alex Kuptsikevich, principal analyst at FxPro, underlines that the closing price on April 30 was the lowest since the end of February, confirming the downward trend. The price has fallen below the supports of March and April, as well as below the psychological threshold of 60,000 dollars. The analyst does not foresee an immediate rebound for Bitcoin.
Over the past 13 years, Bitcoin has closed May up seven times and down six times, with an average rise of 31.3% and an average decline of 14.5%. However, over the past three years, May has seen an average decline of 20% for BTC.
Worrying signals
Arthur Firstov, Managing Director of Mercuryo, points out that this tumultuous day highlights Bitcoin's status as a risk asset, with the crypto market as a whole seeing a significant decline.
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 US Federal Reserve's monetary policy decision. Now, traditional finance players are closely monitoring Bitcoin's every move.
Bitcoin's recent fall below $57,000 raises doubts about a rapid recovery. Analysts highlight a difficult economic context, a natural correction phase, profit taking, capital outflows from ETFs and significant liquidations. The crypto market remains under pressure and uncertainty reigns over the short-term evolution of the price of bitcoin.
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