Here’s what could drive the price of BTC higher, according to an analyst

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Capriole Fund Founder and Bitcoin Analyst Charles Edwards predicts a major catalyst that could drive the price of Bitcoin higher in 2023. introduced restrictive monetary policies by raising interest rates.

More recently, the Federal Reserve decided to raise its benchmark interest rate by 25 basis points on Wednesday, which caused cryptocurrency prices to drop. The Fed has now put in place a steady barrage of 10 consecutive interest rate increases since March 2022 to temper an overheated economy and control soaring prices.

Edwards, in a new tweet, expressed the possibility that rates weren’t going up because the system was about to crash.

He tweeted: “The only way the Fed can compete with Bitcoin is higher rates. But rates can’t go higher because the system is broken. The outcome will be relentless.”

The idea that the Fed would soon suspend rate hikes or possibly cut interest rates later in the year has contributed to Bitcoin’s year-to-date gains of more than 70%.

Indeed, traders tend to avoid “risky” investments like cryptocurrencies when they expect the US central bank to maintain its hawkish monetary policy to contain inflation.

Bitcoin Price Action

Over the past week, Bitcoin mounted another attempt to break above the closely watched $30,000 level, but the bulls were unsuccessful.

The price of Bitcoin (BTC) fell to around $28,394 on May 6 and remains down 1.42% in the past 24 hours at $28,880.

According to Glassnode’s latest weekly report, the market has firmly recovered from the historic discovery phase of the 2022 bear low.

Selling pressure from new investors is now a key driver which has established resistance at $30,000. If this current correction continues, the price base of young supply holders at $24,400 could well be a psychological level to watch in the coming weeks, Glassnode said.

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