Why Did the Bitcoin Price Decline in April and What Can We Expect Next?
The month of April was marked by a downturn in the price of Bitcoin and the broader cryptocurrency market, largely due to speculation surrounding the Federal Reserve’s upcoming meeting. Investors grew uncertain about the potential for higher interest rates, which led to a sell-off in Bitcoin. At its lowest point, Bitcoin reached $61,928 before recovering slightly to $62,387, representing a 2% drop.
The Federal Reserve’s interest rate decision, scheduled for May 1, has been the main focus for market participants. While there is a high probability of rates remaining unchanged, the anticipation of the meeting’s outcome has fueled debates. Typically, higher interest rates are considered a headwind for risk assets like cryptocurrencies, which resulted in increased uncertainty among investors.
Additionally, the announcement of the April unemployment rate by the United States on May 3 will provide further insights into the state of the economy and potentially influence the Federal Reserve’s future decisions.
Bitcoin’s performance has also played a role in the market’s reaction. Although the cryptocurrency had experienced gains of over 70% in mid-March, its momentum slowed down to around 47% in 2021. Bitcoin reached an all-time high of nearly $74,000, but its ability to sustain this momentum is now being assessed, especially against the backdrop of the Federal Reserve’s upcoming announcement. Market sentiment, geopolitical events, and institutional interest are other factors that influence Bitcoin’s performance.
The implications for the broader crypto market in relation to the Federal Reserve’s decision are significant. A hawkish stance on interest rates could lead to further declines, as higher rates tend to discourage investment in riskier assets. Conversely, a dovish tone might relieve some pressure and potentially trigger a rebound in Bitcoin and other cryptocurrencies.
Noted crypto analyst Rekt Capital highlighted that Bitcoin has slipped below the $65,500 resistance and is now trading in a “no-man’s-land” between resistance and a pool of liquidity below. Past rebounds have occurred from similar positions, indicating the potential for a bounce back.
Furthermore, Bitcoin Power Law model builder Giovanni Santostasi predicted a peak for Bitcoin in November 2025 at $218,875. This suggests the possibility of a significant rebound if the conditions align.
Looking ahead, Bitcoin could find support near the $62,400 level. A failure to hold this support could result in further drops, potentially reaching $61,200 or even lower. Conversely, a successful bounce back from this level could signal a recovery, with the potential for testing resistance around $64,000 and ultimately reaching higher levels such as $65,000 or $66,200.
It is worth noting that while Bitcoin consolidates, Ethereum has been gaining momentum. This indicates that capital may flow from Bitcoin to Ethereum, which could impact Bitcoin’s near-term performance. Furthermore, the approval of Ethereum spot ETFs may trigger a surge in ETH prices, potentially influencing the overall cryptocurrency market.
In summary, the decline in the Bitcoin price in April was mainly driven by uncertainty surrounding the Federal Reserve meeting and the potential for higher interest rates. The market is now closely monitoring the Federal Reserve’s decision and other factors that could impact Bitcoin’s performance. Traders and investors are analyzing various support and resistance levels to determine possible scenarios for the next movement in Bitcoin’s price.