Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit $28,152 on Bitstamp, down 2.2% from the day’s high.
The pair continued to be volatile ahead of the Federal Open Market Committee’s (FOMC) meeting on May 3, along with interest rate adjustments.
As reported by Cointelegraph, market sentiment has pegged the odds of a Fed 0.25% hike at 90%+ to replicate its March moves, rather than expecting a surprise.
According to CME Group’s Fed Watch tool, the odds of a hike materializing were 83%, down 15% from the previous day.
Federal Target Rate Probability Chart. Source: CME Group
However, as of March, the Fed could be headed for a banking crisis due to already high interest rates. Multiple United States regional bank stocks fell sharply the day before, raising concerns that the crisis is far from over.
“KRE, the regional bank sector, posted the third biggest daily decline of the crisis, falling nearly 7%. And yet, we still have not received any comment from the FDIC or the Fed,” financial commentary resource, The CoBC Letter, told Twitter followers.
“In fact, the Fed is expected to raise interest rates again today. Meanwhile, no major headlines are reporting on the crisis. The lack of attention to what is happening to our system is incredibly worrying.
The Kobeisi USSPDR S&P Regional Banking ETF is down 30% year-to-date.
Arthur Hayes, the former CEO of crypto derivatives giant Bitmex, took a similarly gloomy view, predicting the collapse of several local banks this week in a copycat move following the closure of First Republic Bank over the weekend.
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PACW indicates a 10% decrease. Oh baby! Will they arrive on Friday or will the Fed surprise us? he asked in a subsequent tweet.
“Isn’t it great that Pax Americana has such a resilient banking system?”
Little hope of a Bitcoin price breakout
Despite the banking anxiety, Bitcoin stayed aloof, failing to capitalize on sentiment and sticking to an established trading range.
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“There is no doubt that BTC has lost some momentum. This is currently the range and whatever happens from here will determine the structure of the market and the next big move,” summarized popular trader Dan CryptoTrades.
“The bullish trend will continue above $30K. Anything under $27K would make for a cheap market structure.
BTC/USD Annotated Chart. Source: Daan Crypto Trades/Twitter
Fellow trader Pentoshi revealed a target of around $25,000 for his next potential trade, while Elysee offered two zones close to the spot price that would “pull the trigger”.
Trader Crypto-ROD, meanwhile, shared a more optimistic short-term BTC/USD roadmap.
However, firm bullishness was hard to find among commentators, with trader Justin Bennett noting that declining volume was a warning sign to flag potential upside.
“I’d like to know how many people believe Bitcoin will hit $100k or $50k this year when the volume looks like this,” he argued on May 2.
