#BTC
Selected reports from Followin: After adjusting up and down around US$70,000 for a period of time, in April, just 17 days before the next Bitcoin halving, Bitcoin suddenly fell for two consecutive days, once approaching falling below US$65,000. The decline of Bitcoin has also brought with it other alternative currencies, and the market value of many currencies has shrunk significantly.
Although it fell just after entering April, in fact, from a monthly perspective, Bitcoin has risen for 6 consecutive months, tying the record set in 2012.
Although Bitcoin's correction was not caused by a major negative event, some factors can still be traced if you look closely.
Grayscale GBTC outflows again
Bitcoin ETF outflows appear to be one of the major bearish headwinds once again. On April 1, Grayscale’s GBTC recorded another $302 million in outflows. ETF chief analyst James Seyffart said the figure was "higher than expected." Overall, net outflows from Bitcoin ETFs totaled $85.7 million on Monday, with inflows from products from BlackRock and Fidelity failing to offset outflows from GBTC.
Crypto analyst @BritishHodl said that there are currently 14 trading days until the halving. If the GBTC trend continues, they will sell an additional $4.2 billion in Bitcoin over the next 14 trading days. This equates to approximately 61,000 additional Bitcoins being sold onto the market. They will still have around 290,000 Bitcoins available for sale at the halving. If the trend continues and sell-off exhaustion is not hit. By July 5th, GBTC will be completely phased out.
Traders' expectations for Fed rate cut fall
In addition to seemingly weakening demand for Bitcoin ETFs, bond traders' expectations of a smaller rate cut from the Federal Reserve may also be one of the reasons why Bitcoin prices have taken a hit.
In fact, the swaps market is already pricing in a less than 50% chance of a Fed rate cut in June. This has put a lot of pressure on risk assets like Bitcoin that typically benefit from loose monetary policies. Last week, Fed official Christopher Waller said a rate cut could be delayed due to disappointing inflation data.
According to the Financial Times, only a handful of Fed officials support three rate cuts in 2024. Atlanta Fed President Rafael Bostic recently said there might be only one rate cut this year.
In the past 24 hours, the scale of the crypto market liquidation exceeded US$500 million
According to data provided by CoinGlass, more than $500 million worth of cryptocurrencies were liquidated in the past 24 hours alone. Of course, long positions accounted for the majority, reaching $417 million. More than 155,000 traders were liquidated, and the largest single liquidation order amounted to $7.48 million.
What analysts think about this pullback
Analysts are not confused by this market pullback, with crypto analyst @CredibleCrypto saying, “This decline is all about testing two logical support levels.”
Long-time crypto and stock investor @CryptoJelleNL says volatility in crypto markets is designed to make you give up or change your plans. Don't be fooled by this ruse - this bull market isn't over yet.
