Crypto traders are currently backing Bitcoin ETFs after BTC halving expectations fell through. In April, the crypto market had a rather uneventful month after a strong surge in the first quarter, which propelled Bitcoin (BTC) to reach a record-breaking high of $73,750.
In the last month, as of May 10, 2024, BTC experienced a decline currently trading slightly above $60K. This crash can also be attributed to the increase in geopolitical tensions and wars. With the decentralized nature of cryptocurrencies, responses to geopolitical events are swift, surpassing the speed of stock reactions.
Bitcoin adoption takes a different path
Currently, the value of Bitcoin (BTC) stands at $60,325.53, reflecting a 1.0% decrease compared to an hour ago and a 2.7% decrease since yesterday. The current value of BTC is 2.5% lower than its value a week ago.
In addition, the current global crypto market cap stands at $2.35 trillion, with a decrease of 2.27% in the last 24 hours and a significant increase of 97.31% compared to one year ago.
Currently, BTC’s market cap stands at $1.19 Trillion, indicating a Bitcoin dominance of 50.56%. Meanwhile, the market cap of Stablecoins stands at $161 Billion, representing a 6.82% share of the overall crypto market cap.
The Bitcoin halving event takes place every four years. After the recent completion of Bitcoin’s April halving, there is a lot of speculation about the potential price increase for the crypto in the coming months. This is mainly due to the decreased supply of Bitcoins, which could lead to increased scarcity.
Since the introduction of the first Bitcoin ETFs on Jan 11, the asset has experienced a remarkable surge of over 50%, reaching a new all-time high of nearly $74,000. The ETFs are a significant development in Bitcoin’s trajectory, providing a regulated and convenient avenue for both retail and institutional investors to enter the crypto market. This development not only improves liquidity, but also helps maintain price stability.
BTC ETFs market performance
Bitcoin is frequently praised as a safeguard against inflation. Bitcoin has a limited supply. This move stands in stark contrast to traditional fiat currencies, which are subject to unlimited issuance by central banks.
Therefore, during periods of inflation, the worth of fiat currencies typically decreases. Meanwhile, certain market observers regard Bitcoin as a valuable asset that can safeguard wealth in the face of rampant inflation, thanks to its finite supply. It is important to mention that the crypto space is highly unpredictable.
Bitcoin ETFs have experienced a decline in investor interest in recent weeks. In the last ten days, there has been a noticeable trend of U.S. Bitcoin ETFs experiencing a total outflow of $230 million, as indicated by the data. Market participants, including Schiff, a Bitcoin critic, have expressed concerns about the potential negative impact of this trend on the price.
In line with the economist’s perspective, Bitcoin ETFs experienced their biggest one-day outflow on May 1, as a substantial amount of $563.7 million was withdrawn. During this period, there was a simultaneous decrease in Bitcoin’s price, falling by 5% from $63,000 to below $60,000.
The initial enthusiasm surrounding the launch of Bitcoin ETFs, which attracted a large number of buyers, has now transformed into a significant pool of potential sellers, as per Schiff. This has heightened the risk of further price declines.
In addition, several other ETFs, including Ark 21shares (ARKB), WisdomTree’s BTCO, and Franklin Templeton’s EZBC, also saw positive movements. ARKB experienced $4.4 million in inflows, while BTCO and EZBC recorded $2.2 million and $1.8 million, respectively.
Based on data from Coinglass, the recent drop in prices can be partially attributed to the rise in crypto liquidations, which amounted to $145M.
