Bitcoin (BTC) experienced another tumultuous day on May 2 as it fought for the key $28,000 support level. Following the previous day's Wall Street open, BTC/USD had dropped below $27,700, signifying a continuation of a round of negative volatility throughout this month. In the meantime, long-term market participants were feeling cautiously pessimistic as they noted that a return to $25,000 or $30,000 was a possibility. Smaller scale investors were particularly concerned the approaching Federal Reserve decision on interest rate policy might send the cryptocurrency further below to lower levels.

Analysis of BTC/USD, as seen on Cointelegraph Markets Pro and TradingView, show Bitcoin rising back up to the $28,000 region, but it may have been a false stability. By the close, Michaël van de Poppe, founder and CEO of trading firm Eight, felt that further declines, this time below $25,000 for Bitcoin, were still strongly possible. He commented that “fear going into the event of the FED tomorrow” was high, though the prediction for an increase in the rate of 0.25% was almost guaranteed according to CME Group's FedWatch Tool which currently quotes a 97.4% certainty.

In the larger markets, regional bank stocks were feeling the strain and saw multiple lenders go down as much as 20%. Once again, Bitcoin was not quick to capitalize on the fallout, showing that the cryptocurrency is still in a precarious position as excitement surrounding past performance and all-time highs is slowly being replaced by measured caution and trading strategies. As the market moves forward, investors should continue to assess the performance of the bigger picture and be aware of potential downturns as well as potential uptrends.



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