Experts worry that a Bitcoin Death Cross might be problematic.

Investors are concerned because a troubling signal for the biggest cryptocurrency in the world, Bitcoin, has lately surfaced. From the beginning of the year, BTC has performed admirably, rallying 33% after a sell-off was sparked by the collapse of FTX. Yet, it is unclear how long this surge will last.

Why all the fuss?

When an asset's 50-day moving average falls below its 200-day moving average, this is known as a death cross. Continual selling pressure usually implies a gloomy short-term outlook. Before the price crash of the broader crypto market in 2017–2018, a Bitcoin death cross also happened. Death crosses, according to some, are an unreliable warning of a coming sell-off. In the weeks that followed, average gains have typically outweighed average losses for many of the death crosses that have appeared in the S&P 500 over the years.

What is the death cross caused by?

In response to worries about Silvergate's capitalisation, which even the White House has echoed, BTC has already fallen by 5%. And if cryptocurrency bears needed another excuse to dump their holdings, this would be it. The bearishness is being brought on by more than simply worries in the cryptocurrency sector. Bitcoin faced severe resistance at the $25k mark in mid February, and Jerome Powell's statement on the Fed's monetary policy yesterday, when he reiterated his confidence that inflation could climb higher, created further investor concern. Yet, Bitcoin investors are accustomed to volatility.