• The cryptocurrency market has been in a slump since Bitcoin (BTC) hit an all-time high of $68,000 and then dropped to around $17k.
• Analysts are wondering if BTC will be able to break the key psychological level of $35,000 this month, and what that could mean for DeFi startups like HedgeUp (HDUP).
• Factors contributing to the current price action include: the Bitcoin halving event every four years, and „hopium“ – the optimistic mindset of believers in the potential of cryptocurrency.
Bitcoin Price Analysis
The Halving Event
The cryptocurrency market experiences various events which cause significant price movements. One of these events is the Bitcoin halving, where miners‘ rewards for validating transactions on the Bitcoin network is cut in half. This event occurs every four years and is seen as a celebration by crypto investors due to BTC’s finite supply – reducing its availability increases its value in theory.
Another factor contributing to BTC’s price recovery is Hopium – a term used to describe the optimism within the crypto community about its potential future. Those who subscribe to this sentiment remain hopeful even when prices dip, reinforcing faith in cryptocurrency and increasing demand on markets when prices start to rise again.
Will it Reach 35K?
With all these factors at play, analysts are now asking if Bitcoin will be able to break through the key psychological level of $35,000 this month. Reaching this milestone could have major implications for DeFi startups like HedgeUp (HDUP). However, it’s impossible to know for sure whether or not Bitcoin will achieve this goal until May ends.
It remains unclear whether or not Bitcoin will reach its target of $35k by May’s end; however external factors such as its finite supply and faith from investors suggest that it could well do so. If it does hit this mark then there may be exciting times ahead for DeFi startups such as HedgeUp (HDUP), but only time can tell whether or not these predictions come true!