BTC/USD Desperately Looks for Fundamentally Sound Event to Reverse Downsliding

BTC/USD touched a low of $26,380 on Bitstamp. A small bounce then brought the pair into the familiar range of a few days ago and remains in focus ahead of Wall Street's final close for the busy, but hopeful in terms of risk-on week. Rising expectations for a June rate hike by the Federal Reserve drove losses overnight. That was thanks to weak jobless claims data this week and Fed officials taking a hawkish tone.

Material Indicators pointed out that some market participants are manipulating the Bitcoin price on short timeframes. And trading portal Decentrader notes that in order for Bitcoin's price to recover, it needs strong fundamental factors, which are not yet observed in the market. The recently launched Ordinals protocol allowing BTC to source NFT market fell short of expectations. The initial spike of interest quickly waned, because, unlike in the case of Ethereum ERC-20, there weren’t enough requests for those types of transactions.

We can say that at least after Pepe Coin’s breathtaking price records, Bitcoin is losing popularity. It was rising after the problems in the U.S. banking system began. Now the government is hurriedly closing the holes in the budgets of regional banks. The U.S. economy is likely to avoid a recession.

Leading banks believe that the states' economies will have a soft landing in the second half of 2023. The S&P 500 companies also performed above expectations, with higher-than-forecast reports. Against this backdrop, Bitcoin's popularity has declined.

Bitcoin's volatility has reached historically low levels. The 60-day annualized volatility of the asset fell below 40% for the 8th time in the last 5 years. Sentiment points out that for the first time since July 2021, the Bitcoin market has seen less than 800,000 unique addresses making transactions.