Key Insights:
Bitcoin could see a major boost if its price breaks out of the descending triangle pattern.
Heavy corporate buying and the Federal Reserve's quantitative easing is expected to push Bitcoin towards $100k soon.
Liquidity crisis, retail selling and a few other factors have pushed Bitcoin prices down.
Experts advise lending your Bitcoin instead of selling it, citing the high probability of a rally.
Descending Triangle in Bitcoin
Tradingview
Bitcoin has seen the formation of a descending triangle pattern since the beginning of this year. The US fed in its last meeting on 28 and 29 January, signaled that there would be far fewer rate cuts in 2025 than expected earlier, with the possibility of zero rate cuts if interest rates remain high.
This sparked a liquidity crisis, where markets began to sell cryptos aggressively. As a result, Bitcoin fell 25%, from $109k to $76k last month.
As Bitcoin goes through the month of April, we see the descending triangle pattern finishing on its 1D Charts and it could probably give away to a large breakout. The US Fed had previously indicated that starting from this month there would be more quantitative easing from its side, followed by a possible rate cut in May 2025.
Several factors are pushing Bitcoin towards the lower side. One of them is the trade war by Trump, which is the most critical factor in current markets. Besides, there are other factors, like retailers selling BTC, as shown by Glassnode in its previous insight. The final factor that has been affecting BTC for the last few months is the liquidity crisis.
In an attempt to implement reciprocal trade tariffs, Donald Trump had threatened Canada Mexico China India European Union and a few other Latin American countries to impose reciprocal tariffs if they did not lower their trade barriers.
A continuation of this trade war would mean that there will be less business around the Globe and consequently, there'll be less money for people to invest in assets like Bitcoin.
According to Glassnode, retailers buying Bitcoin had gone down severely to an index score of 0.2 out of 1 while whales (both native and corporate) buying Bitcoin had gone up to a score of 0.6.
The crypto market liquidity crisis is well known since the US Federal Reserve commented last December that the interest rates would remain high for most of the year due to inflation (which is still at 3%), signalling that there would be far less rate cuts in this year than previously anticipated.
These high interest rates are forcing buyers to increase payments on their loans and maintaining their lifestyle while leaving them with less money to invest in assets like Bitcoin.
Several corporates like Strategy, Metaplanet, the BlackRock Group, and many others have been buying Bitcoin for the last few months. Several new buyers like the Blockchain Group and Gamestop have joined them buying a considerable amount of Bitcoins.
Michael Saylor's strategy recently bought $1.92 billion worth of bitcoins and aims to buy at least $15 billion more in BTC before the year ends.
Recently GameStop successfully raised $1.5 billion against previous estimates of $1.3 billion to buy Bitcoin. The company is believed to have been sitting on a cash pile of $4.5 billion.
Many other corporate players are also considering investing in Bitcoin with most of them being from the smaller business categories such as USA's KULR Technologies.
Bitlier CEO Charlie Hu advised market participants to not sell their Bitcoins; instead, he advised them to lend them. The CEO thinks there is a rise in Bitcoin-backed lending.
In February 2025 Michael Saylor had advised the markets to never sell your Bitcoins.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.