#Write2earn #Bitcoin Faces Decline Amidst Investor Uncertainty: April Performance and #Fed Decision Analysis #MarketAnalysis #fomc $BTC $ETH

Bitcoin experienced a three-day decline this Wednesday, following its poorest monthly performance since late 2022 in April, as investors withdrew funds from cryptocurrencies ahead of an anticipated Federal Reserve interest rate decision.

During April, the value of Bitcoin, the most widely traded cryptocurrency, plummeted by nearly 16%, as investors cashed in on a red-hot rally that had propelled its price to record levels above $70,000. Currently, Bitcoin stands at $57,055, marking a 4.7% decrease and hitting its lowest point since late February. Meanwhile, Ether saw a more modest drop of 3.6%, resting at $2,857, its weakest level since February as well.

Bitcoin's price now stands 22% below its March record of $73,803, technically entering bear market territory.

However, it has still seen a 35% increase since the beginning of the year, and has doubled its value compared to this time last year, largely due to the influx of billions of dollars into newly established exchange-traded funds (ETFs) since January.

Matteo Greco, an analyst at Fineqia research, attributes the recent downtrend to profit-taking by investors who entered the market during the downturns of 2022 and 2023, as well as ETF investors who witnessed significant price appreciation on their shares after entering the market in early 2024.

Regarding macroeconomic factors, while the Fed is not expected to alter interest rates, investors are beginning to speculate that the central bank may refrain from rate cuts throughout the year, which could adversely affect interest rate-sensitive assets such as cryptocurrencies, emerging market stocks and bonds, and commodities.

This speculation has resulted in outflows amounting to $496 million this week, primarily as investments in BlackRock's iShares Bitcoin Trust, the largest in terms of holdings, have slowed.