It’s been a rocky start to the year for Bitcoin, but experts still say it will hit $100,000 — and that it’s more a matter of when, not if.
Bitcoin’s price plunged below $31,000 Monday, continuing a descent that began at the end of last week and persisted throughout the weekend. The leading crypto saw a brief rally on May 4, primarily driven by the Federal Reserve’s announcement that it is raising its benchmark interest rate by half a percentage point, but those gains were quickly erased. The Fed signaled that it will continue raising rates aggressively in the coming months and begin reducing asset holdings on its $9 trillion balance sheet in June.
Investors continue to wrestle with concerns over rising inflation, geopolitical tensions, and the possibility of tighter monetary policy by the U.S. Federal Reserve. The crypto market has increasingly tracked the stock market in recent months, which makes it even more intertwined with global economic factors.
With no end in sight, the war, inflation, and shifting monetary policy in the U.S. will likely continue to drive more volatility in the coming weeks and months, experts say.