Bitcoin Experiences Downturn Amidst Underwhelming ETF Performance and Economic Data
Summary:
On April 26, Bitcoin's value witnessed another dip in line with familiar market patterns amid challenging economic data and underwhelming performance of U.S. Bitcoin exchange-traded funds (ETFs). There was an outflow of over $200 million from Bitcoin ETFs, dampening the initial enthusiasm of the week. Some market observers suggest that a clear Bitcoin price trend may remain absent for an extended period, though altcoins might provide more action. Bitcoin currently occupies approximately 55% of the total crypto market cap, down from a two-year peak of 57%. Traders project further price volatility in the next two weeks.
Bitcoin's value took another twirl on the downward slope as Wall Street opened its doors on April 26, reflective of a familiar market pattern that continues to rein in the optimistic bulls. In the face of troublesome economic data and the disappointing performance of U.S. Bitcoin exchange-traded funds (ETFs), the crypto market seemed locked in a challenging trading range.
Interestingly, this slump followed an initial surge with Bitcoin initially hitting high notes around $65,300 before the daily close. Bitcoin ETFs, in particular, recorded over $200 million in net outflows, effectively dousing the enthusiasm that marked the week's start.
Bloomberg's ETF analyst James Seyffart revealed, "Yesterday was not a good day for the Bitcoin ETFs." Continuing, he noted, "A total of -$217 million flowed out from 5 ETFs. The only exception was Franklin, which registered an inflow of $1.9 million.”
Amid the sobering environment across the cryptocurrency spectrum, some traders hinted at an extended absence of a clear Bitcoin price trend. However, Michaël van de Poppe, founder and CEO of trading firm MNTrading, surmised that altcoins could break away from the pack and yield the long-awaited gains.
“While Bitcoin remains trapped in its range, I don't foresee much action over the next 3 to 6 months," he predicted, adding, "Altcoins, however, could offer more."
Bitcoin's claimed around 55% of the total crypto market cap, down after hitting 57% — a two-year peak — on April 13. Popular trader Rekt Capital, closely monitoring the price action around the Bitcoin halving subsidy, offered a two-week timeline for any deeper dips, if they were to occur.
In explaining the current predicament, he outlined, “Bitcoin is currently in the post-halving ‘danger zone’ and flirting with the range low. If we're to see any further volatility pushing the Price below this range, it will likely happen over the next two weeks.”
The noted price patterns reflect those seen in the 2024 halving, as displayed in the associated chart. This news piece does not serve as an investment guide or recommendation. Every financial move carries risk, and readers must undertake their own due diligence before making any investment decisions.
Published At
4/26/2024 8:26:04 PM
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