Bitcoin's biggest drop since the collapse of the FTX empire
Bitcoin price dropped the most since Sam Bankman-Fried's#FTX"empire" collapsed in November 2022.
Bitcoin price plummeted more than 14% in April, ending a streak of impressive growth that lasted since the beginning of the year. Currently, this digital currency is trading around the 60,200 USD/BTC mark, significantly lower than the peak of 74,000 USD reached in March.
The sharp decline of Bitcoin led to the decline of the entire cryptocurrency market. The overall market capitalization of cryptocurrencies has dropped to $2,000 billion, losing an important milestone after months of growth.
Many reasons are believed to lead to Bitcoin's strong price decline:
Declining expectations of Fed interest rate cuts: The Fed's tightening monetary policy causes capital to flow out of risky investment channels such as cryptocurrencies.
Investor disappointment in Bitcoin ETFs in the US: Capital inflows into Bitcoin ETFs in the US decreased sharply, showing a decline in investor interest in this digital currency.
Bitcoin halving event does not bring positive impact as expected: Bitcoin halving, which takes place every 4 years, marks a reduction in the supply of new Bitcoin on the market, however this event does not bring a boost to the price Bitcoin as expected by many investors.
The launch of Bitcoin ETFs in Hong Kong was not successful: Although expected to create new resources for the market, Bitcoin ETFs in Hong Kong have low trading volume and do not attract much attention. investors' attention.
