The biggest crypto currency was trading nearly $27,350, 0.4 per cent lower during the last 24 hours

Bitcoin (BTC) continued its recent consolidation below $28k on Monday.

The biggest crypto currency in terms of market capitalization was recently trading nearly $27,350, 0.4 per cent lower during the last 24 hours, as per CoinDesk data. Bitcoin fell below $28k on Friday afternoon, part of a two-day decline that came after a week above $30k. At one point, bitcoin was trading around $27,100.

Sam Callahan, an analyst at bitcoin financial services company Swan Bitcoin, told CoinDesk that bitcoin’s recent price decline can be seen as a time of consolidation and a healthy correction following a massive move upwards beyond $30k during the past several months.

Market participants appear to be exercising some caution in the wake of the increased possibility of the Federal Reserve maintaining interest rates higher for longer, as well as a number of economic metrics indicating weakness in the economy, he stated.

Investors are focussing on next week’s Federal Open Market Committee (FOMC) meeting. The CME FedWatch Tool presently shows a 91 per cent possibility of the Fed hiking interest rates 25 bps.

Nonetheless, bitcoin’s value proposition as an asset without counterparty risk has never been more compelling amid the turbulence recently seen in the banking sector, and the price shows that, he said.

Ether (ETH), the second-biggest crypto currency in terms of market value, was trading at nearly $1,833 on Monday, 0.8 per cent lower from Sunday, same time.

During the last week, bitcoin and ether have dipped 7 per cent and 11 per cent, respectively, as investors contemplated industry and macroeconomic uncertainties, including a decline in U.S. dollar liquidity.

Crypto data company Kaiko noted in a Monday report that in spite of the recent price decline, the bitcoin-to-gold ratio continued to rise during the past week, with one bitcoin equalling 14.7 ounces of gold during early April, up from 9 ounces at the start of 2023.

A rising ratio means that bitcoin is surpassing safe-haven gold in spite of the continued macro uncertainty and is a bullish signal, the firm stated, adding the ratio, which had earlier dropped to its lowest level when FTX failed in November, bounced back in 2023.

Equities were trading mixed Monday afternoon, with the S&P 500 nearly flat and the tech-heavy Nasdaq Composite dropping 0.3 per cent. The Dow Jones Industrial Average (DJIA) was 0.1 per cent higher for the day.