Bitcoin (BTC), the biggest crypto, is facing a potential fifth consecutive day of losses as investors’ sentiments turn neutral. It depicts that BTC’s recent downtrend is part of a broader $500 billion slump in the crypto market. However, this has raised concerns over the crypto market ahead.
Bitcoin down by 12% in last 30 days
BTC price has dropped by more than 12% in the last 30 days, while it has managed to gain by 5% over the last 7 days. This shows how the biggest crypto is failing to get into rhythm. It is now facing the fifth consecutive day of losses which will mark the longest losing streak since October last year.
Data shows that the cumulative crypto market cap has seen a 17% decline to $2.4 trillion following Bitcoin’s recorded it’s all time high (ATH) in mid March of $73,798. As of now, the total crypto market cap has dropped to $2.28 trillion. Its 24 hour trading volume stood at around $63.9 billion on Thursday.
It is important to note that factors such as reducing inflows into US spot Bitcoin exchange-traded funds (ETF) with expectations of prolonged Federal Reserve interest rates are hampering enthusiasm. Even the recent launch of crypto ETFs in Hong Kong failed to uplift sentiment.
Cash inflows into US funds surged after their January debut, propelling Bitcoin to its peak. However, net inflows now stand at $11.8 billion after a $169 million outflow this month, leading to concerns among speculators.
What’s next?
Crypto experts noted that many speculators who had anticipated strong ETF flows are now exiting the market. Nonetheless, he believes the bull market persists and predicts Bitcoin will reach new highs by the end of 2024.
In the derivatives market, indications suggest investors anticipate less volatility in Bitcoin compared to the turbulence seen during the US ETF rollout. Both the T3 Bitcoin Volatility Index and the equivalent measure for Ether are at approximately two-month lows.
April witnessed a cooling off in cryptocurrency trading volume, marking the first decline in seven months. Escalating geopolitical tensions and slower inflows into US-listed spot ETFs contributed to the market’s retracement from March’s record highs.
Spot and derivatives market volume fell by 43.8% to $6.58 trillion, with derivatives experiencing a sharper decline of 47.6% to $4.57 trillion. Meanwhile, spot market volume saw a relatively modest drop of 32.6% to $2.01 trillion.
