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Bitcoin Tumbles Below $60K, Risking Deeper Pullback as Crypto Markets Endure Worst Month Since FTX Crash

Apr 30, 2024
    Bitcoin has lost over 16% in April, on track for its worst month since November 2022.BTC could drop to the mid-to-low $50,000 region, Ledn CIO said.The Hong Kong spot crypto ETF debut wasn’t as poor as it was made out to be, a Bloomberg Intelligence ETF analyst noted.
As a crypto investor with several years of experience in this market, I’m keeping a close eye on the recent developments and their potential impact on my portfolio. The steep decline of bitcoin (BTC) below $60,000, following the weak debut of spot ETFs in Hong Kong and heightened interest rate fears, has left me concerned about the current state of the market.As a researcher studying the cryptocurrency market, I would argue that we may have officially entered bear market territory for Bitcoin (BTC), as it dipped below the $60,000 mark on Tuesday. The lackluster debut of spot Bitcoin ETFs in Hong Kong and escalating concerns over interest rate hikes seemed to provide ample motivation for traders to sell off their holdings.
I analyzed the cryptocurrency market and noticed that Bitcoin (BTC) took a hit, reaching its lowest point since late February at $59,100 around afternoon hours. This represented a significant drop of over 5% in just 24 hours for BTC. The broader CoinDesk 20 Index (CD20) followed suit, experiencing an even more pronounced decrease of 6%. Ether (ETH) and solana (SOL) were also affected, with losses amounting to around 7%-8% respectively.

Bitcoin now lower by roughly 20% from its all-time high above $73,000 hit in mid-March.

As an analyst, I would rephrase it as follows: I observed a challenging day for traditional markets after the release of several U.S. economic reports Tuesday morning. These reports exhibited a stagflationary trend, indicating slower growth accompanied by quickening price pressures. Consequently, the Nasdaq declined by 2%, and the S&P 500 dropped by 1.6%.

New data indicating a stronger US economy and higher inflation has caused the Federal Reserve to reconsider its plans for interest rate cuts. This news is negatively impacting the digital asset market according to Joel Kruger, a strategist at LMAX Group, as reported on Tuesday.

As a crypto investor, I’ve noticed that the Fed’s stance on monetary policy seems to be shifting towards a more hawkish approach, despite some investors clamoring for further accommodation. This trend is becoming increasingly apparent with the US dollar regaining favor against other currencies. Consequently, this dollar strength is starting to impact crypto assets as well.

Worst month since FTX

As a researcher studying the cryptocurrency market, I’ve observed that both Bitcoin (BTC) and the broader crypto market experienced a significant downturn on Tuesday. This decline, if it continues, could potentially end the seven-month winning streak for these assets. The last time we saw such a substantial monthly decrease was back in November 2022 when the crypto exchange FTX faced major issues, leading to a market-wide selloff.
As the clock ticks down to the end of the month (UTC time), bitcoin has dropped approximately 16% since April began. Ether, on the other hand, has experienced an even more significant decrease of around 18%. The smaller cryptocurrencies have fared worse, with popular altcoins such as Solana (SOL), Dogecoin (DOGE), and Avalanche (AVAX) suffering corrections of up to 35%-40% during this month.

The cryptocurrency market’s total value decreased by approximately 18% according to TradingView’s data, marking its most significant drop since June 2022.

Bitcoin’s decline might not be over

As a researcher studying the cryptocurrency market, I anticipate a price drop for Bitcoin (BTC) towards the mid-to-low $50,000 range. This sell-off is likely to present an attractive buying opportunity.

During the summer months, when there is typically less demand, K33 Research observed that seasonal influences tend to result in lower prices.

“A trader opting for a strategy of buying BTC on the May open and closing the trade on the

As a crypto investor looking back at the market performance over the past five years, I’d sadly admit that closing my positions in September would have resulted in a significant loss of 29%. However, if I had adopted a more aggressive trading strategy and bought in October, then sold by April, I would have enjoyed an impressive gain of over 1,400%.

The (not so) tepid Hong Kong ETF debut

As a crypto investor, I observed that the debut trading day for the Hong Kong-listed spot Bitcoin and Ethereum ETFs didn’t generate much excitement among market participants. The trading volume was quite modest, hovering around just over $10 million.

Despite initial appearances, the launch proved more effective than anticipated, according to Eric Balchunas, senior ETF analyst at Bloomberg Intelligence. The Hong Kong ETF market pales in comparison to the United States in terms of size.

“If you localize numbers, this was big,” Balchunas said.

As a researcher, I’ve uncovered some noteworthy information regarding ChinaAMC’s bitcoin product. In its inaugural trading session, this particular offering amassed an impressive $123 million in assets under management. Based on Bloomberg data, this places it as the sixth most successful ETF launches within the past three years. Additionally, it currently ranks among the top 20% largest ETFs in existence.

As an analyst, I would interpret Balchunas’ statement as follows: I myself believe that the recent influx of Hong Kong-listed ETFs represents an opportune moment. These ETFs could potentially counteract the recent deceleration in investments in U.S. products.

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2024-05-01 00:49