What happened with the Bitcoin price in April?

Cryptos increasingly have been trading in similar patterns to other high risk assets.

| More on:
A bitcoin trader looks afraid and holds his hands to his mouth among graphics of red arrows pointing down

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Bitcoin price retraced 17% in April
  • The crypto has come under renewed pressure amid rising interest rate expectations
  • Australians can now buy luxury vehicles with cryptos

After charging 20% higher in March, the Bitcoin (CRYPTO: BTC) price went the opposite direction in April.

Depending on your time zone, the world’s number 1 token by market cap kicked off the month just past trading for US$45,843. By the late hours of 30 April, the Bitcoin price stood at US$38,063, down 17% for the month.

In a sign of its continuing volatility, Bitcoin traded for as high as US$47,313 in April while it reached lows of US$37,585, according to data from CoinMarketCap.

Up 1.6% so far in May, the digital token is down 44% from its 10 November all-time highs.

Why did the Bitcoin price retrace in April?

The biggest headwind facing the Bitcoin price last month was the spectre of a series of significant interest rates from the US Federal Reserve, with other major central banks expected to follow.

Commenting on Bitcoin’s slide earlier in April, eToro’s market analyst and crypto expert Simon Peters said:

The moves down underpin what has emerged as a significant trend in 2022 – that cryptoassets don’t appear immune to rate hike environments. Moving to a similar beat to traditional stock markets such as the Nasdaq 100, crypto appears to be struggling under an increasing rate environment.

Indeed, the tech-heavy Nasdaq closed down 14% in April, compared to the 17% fall in the Bitcoin price.

But it wasn’t all bad news for crypto investors.

Buy your luxury car with crypto

During the month gone by, CoinSpot reported that it was partnering with luxury car retailer Dutton Garage to allow its customers to buy vehicles with a range of 30 some cryptos, including Bitcoin.

Customers can either pay for all or part of their shiny new Porsches or Mercedes with crypto, with any additional payments made with good old Aussie dollars.

“Increasing crypto’s utility is the key to driving mass adoption of what we believe is the future of finance,” CoinSpot chief product officer Gary Howells said at the time the partnership was announced.

With the Bitcoin price falling 17% in April, swapping the tokens out for a new vehicle may have been fortuitous timing.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Cryptocurrencies

a man with his back facing the camera sits at a computer displaying a screen of code with an electric power contraption on the desk near him as he sits in concentration while appearing to mine cryptocurrency.
Cryptocurrencies

Ethereum price falls after hackers begin laundering $100 million bridge exploit

Crypto bridges enable the transfer of tokens between different blockchains, but can provide hackers with opportunities.

Read more »

A shiba inu dog lying on the sand at a beach.
Cryptocurrencies

What’s going on with the Dogecoin price?

The meme token received a fresh round of support from Elon Musk.

Read more »

A young woman lifts her glasses with one hand as she takes a closer look at the news that the US SEC is ready to label Bitcoin a commodity
Cryptocurrencies

What did the SEC just say about Bitcoin?

Commodities and securities face significantly different regulations in United States markets.

Read more »

A man sits at his computer with his head in his hands while his laptop screen displays a Bitcoin symbol and his desktop computer screen displays a steeply falling graph.
Cryptocurrencies

How crypto miners are squeezing the Bitcoin price

Higher-cost crypto miners could be out of pocket more than US$20,000 for every Bitcoin they mine.

Read more »

A green-caped superhero reveals their identity with a big dollar sign on their chest.
Bank Shares

ASX 200 bank ANZ turns to crypto for carbon credit settlement

The carbon trading market is forecast to grow as the world continues work to slash greenhouse gas emissions.

Read more »

A man sits wide-eyed at a desk with a laptop open and holds one hand to his forehead with an extremely worried look on his face as he reads news of the Bitcoin price falling today on his mobile phone
Cryptocurrencies

The Bitcoin price is struggling. When will cryptos see a bottom?

Crypto investors may need to wait for the US Federal Reserve to ease the pace of its tightening before the…

Read more »

Clock with post it as a reminder of Tax Time
Tax

The ATO is collecting crypto taxes. Here are 5 handy expert tips come tax time

A number of factors will determine how much tax, if any, crypto investors need to pay to the ATO this…

Read more »

A bitcoin trader looks afraid and holds his hands to his mouth among graphics of red arrows pointing down
Cryptocurrencies

What to expect from the Bitcoin price following last week’s thrashing

Higher interest rates and bad news cycles have impacted investor sentiment on cryptos.

Read more »