According to Cointelegraph: Bitcoin (BTC) began the second quarter of 2024 with several exciting milestones as it gears up for a potential bull market surge. The first quarter ended on March 31st with BTC posting its highest-ever monthly close. However, the fight is still on for a higher all-time high from 2021, with sell-side liquidity expected to dwindle once BTC tops $74,000 in value.
The Q2 commencement could bring volatile movement, especially with the U.S. reporting its nonfarm payrolls within the week. Other influencing factors include fresh remarks from Jerome Powell, Chair of the Federal Reserve, who recently maintained the possibility of interest rate cuts in 2024.
While Bitcoin's value continues its steady climb, cashing out has become an appealing option for seasoned hodlers. This trend opposes the wave of institutional capital entering Bitcoin through spot exchange-traded funds (ETFs).
BTC started Q2 just below $70,300, marking the highest weekly, monthly, and quarterly close in its history. This growth is inspiring renewed market interest. Notable trader Skew welcomes caution for future investment until clear trend signals are identified, paying particular attention to Wall Street's open and ETF flows as significant factors.
Adding to the week's agenda, remarks from Fed Chair Powell and U.S macro data, specifically nonfarm payrolls, will impact Bitcoin's price action. Long-term Bitcoin holders continue to take profits, increasing the sell-side pressure on the cryptocurrency.
Bitcoin's Q1 performance shows a remarkable similarity to the 2021 cycle, suggesting possible patterns in future market behavior. Lastly, a revival of 'extreme greed' is visible among traders, elevating the chances of irrational trading and price corrections as the bull market gains momentum.
Bitcoin's future remains largely optimistic, with every event contributing to the digital currency's layered and dynamic price tapestry.
