Bitcoin price rallies to $32.3K, but three factors could limit its recovery

cointelegraph.com:

Bitcoin (BTC) price action has been surprisingly bullish since May 27. Weekends, especially holiday weekends, are notoriously volatile and indecisive, with major whipsaws in price movements being the norm. Even in bull markets, bearish price action is often the norm, but BTC bucked that trend. 

Bitcoin rallied nearly 11% between May 27 and May 30, moving through the critical $28,600 level to move back above $30,000 to $31,700. The weekly close was the highest close of the past twenty days and it gave bulls the strongest three-day run in over two months. However, macroeconomic fears may weigh on any further upside potential. 

The global food supply is a primary yet easily overlooked factor contributing to Bitcoin’s future price potential. Since the beginning of the COV-19 pandemic, governments worldwide have shut down their seaports and airports, effectively cutting off and interrupting the flow of goods. This disruption will take years to return to normal, but that is not the primary cause of concern.

In the United States, fertilizer costs have risen exponentially over the past 18 months. In January 2021, the Fertilizer Price Index stood at $78.83 and is currently at $254.97, increasing nearly +225%. A combination of supply chain disruptions and continued shortages is likely to continue disrupting this market.

Individual commodity prices continue to rise and are a primary contributor to the steady rise in inflation. In particular, wheat (CBOT: ZW) hit new all-time highs in February 2022 and remains near those all-time highs. In just 2022, alone, wheat futures have increased as much as 76% and over 143% in the past 18 months. 

Oil futures (NYMEX: CL) continue to rise and are now trading at levels not seen since July 2008.