🥺Bitcoin Drops Below $60K After Lackluster Hong Kong ETF Launch: Futures Premium Hits 5-Month Low!👇

Bitcoin’s price took a sharp nosedive on April 30, following the underwhelming debut of a spot BTC exchange-traded fund (ETF) in Hong Kong. The anticipated trading volume for the opening day was far below expectations, totaling just $12.4 million across Bitcoin and Ether ETFs. This unexpected slump has shaken the market, leading to the lowest futures premium for Bitcoin in five months, hinting at potential bearish trends.

Broader market forces, including weak macroeconomic conditions and uncertainty over US interest rate policies, have also contributed to Bitcoin's decline. With the US Federal Reserve's next meeting on May 1, and Chair Jerome Powell’s post-meeting remarks looming, crypto traders are playing it safe.

Concerns about the U.S. market's appetite for Bitcoin ETFs are also rising, with four consecutive sessions of net outflows from US-listed spot Bitcoin ETFs. The high fees of the Grayscale GBTC ETF are driving investors away, and the Blackrock IBIT ETF has yet to gain traction. This signals a potential slowdown in institutional interest in Bitcoin-based products.

Adding to the downward pressure, the S&P 500 is heading for its first negative monthly performance in six months, and yields on U.S. 5-year Treasury notes are climbing, reflecting rising concerns about inflation and U.S. government debt. All these factors contribute to a less-than-rosy outlook for Bitcoin.

The futures premium, which reflects the difference between the price of Bitcoin in futures contracts and the spot market, dropped to 7.5% on April 30, down from 11% just a week earlier. This decline suggests a dampening of investor sentiment.

Moreso, the Bitcoin options delta skew shifted from a bullish -7% on April 28 to a neutral 1%. This suggests that while investors were initially optimistic about the Hong Kong spot ETF launch, they quickly adjusted their expectations after the low trading volumes.
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