Bitcoin has experienced a significant depreciation in the past few weeks, leading many investors and analysts to speculate on the future of the cryptocurrency market. As the world's largest digital currency, Bitcoin has a significant impact on the wider cryptocurrency market and its movements are closely watched by traders and investors.

With the recent market instability, the question on everyone’s mind is whether Bitcoin will stabilize or continue to plummet below $25,000. In this article, we will explore the current state of the Bitcoin market and provide a near-term price prediction.

Uncertainty surrounding crypto regulation in the United States and its impact on Bitcoin (BTC)

Cryptocurrency prices started the new week with losses after a sharp sell-off over the weekend. The reason behind this can be attributed to the increasing regulatory scrutiny and regulatory uncertainty facing crypto-related businesses in the United States.

The U.S. government’s recent crackdown on cryptocurrencies has caused a sharp drop in the BTC/USD price. Recently, Coinbase CEO Brian Armstrong hinted that cryptocurrency exchanges may move out of the United States if the legal environment does not change.

On April 24, Coinbase filed a lawsuit seeking a response from the U.S. Securities and Exchange Commission to their earlier request for rulemaking to clarify cryptocurrency restrictions. The digital currency exchange had submitted a petition and an exhaustive list of inquiries to the regulator in July last year.

According to Bitcoin bull and billionaire tech investor Chamath Palihapitiya, U.S. policymakers are effectively killing the cryptocurrency industry.

U.S. economic indicators weigh

On Monday, April 24, the Dallas Fed released the Dallas Fed Manufacturing Index report, which showed that the index had dropped from -15.7 in March to -23.4 in April, lower than the analyst consensus of -14.6. The survey showed that the economic condition rating dropped significantly in April.

Meanwhile, investors shifted toward a more hawkish stance on the Federal Reserve's monetary policy as economic data remained weak.

On Tuesday, the probability of a quarter-point rate hike in May rose to 84%, according to the CME FedWatch tool. Also, the probability of a hike in June also rose to 24.7%.

The U.S. dollar index (DXY) rose slightly, up 0.02% to 101.37, amid speculation of another rate hike. Overall, increased risk aversion and indicators of a weakening U.S. economy led to a drop in BTC/USD prices.

Bitcoin Price

Bitcoin is currently trading between $27,200 and $27,823. Technical indicators such as RSI and MACD indicate a selling bias, but also indicate that the price of Bitcoin may be trending upward. If Bitcoin falls below $27,200, it may fall to the next support level of $26,665 or even to $26,000 or $25,600.

If the demand for Bitcoin rises, it could break the $27,800 resistance and reach $28,260 or $28,820.

Investors should closely monitor this range to determine future price action. Economic events such as the US CB Consumer Confidence Index and New Home Sales can also have an impact on Bitcoin prices.

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