Simon Peters, expert cryptoasset analyst at the eToro trading and investment platform, comments that it has been a difficult week for cryptoassets as the price drop eliminated more than $235 billion from the total market capitalization.
Specifically, bitcoin fell to $56,500 and ended April down 18%, making this month the worst-performing month since FTX's bankruptcy in November 2022.
Prices seemed likely to continue their decline as the week progressed. Factors such as spot ETF inflows and the amount of circulating supply being held by investors rather than being sold, which contributed to the price rise to the all-time high of $73,800 at the beginning of the year, were They have recently turned 'negative' and have put pressure on the price.
However, last Friday's release of the non-farm payrolls report, which came in lower than expectations and a higher unemployment rate in the US, triggered a rise in the price of bitcoins (and other crypto assets), as rising optimism around rate cuts by the Federal Reserve also caused bond yields and the US dollar to fall.
We look forward to seeing if Friday's momentum will carry over into this week and lift the price above the $66,800 level to mark a 'higher high', or if the resurgence was short-lived and prices return to $60,000 or lower.
