The month was the worst since the FTX crash

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Recent U.S. economic data could prompt more hawkish forward guidance from the Federal Reserve.
By Krisztian Sandor Apr 30, 2024 at 9:17 p.m. UTC Bitcoin has lost over 16% in April, on track for its worst month since November 2022.
The Hong Kong spot crypto ETF debut wasn’t as poor as it was made out to be, a Bloomberg Intelligence ETF analyst noted.
Bitcoin now lower by roughly 20% from its all-time high above $73,000 hit in mid-March.
Worst month since FTX With Tuesday’s decline, BTC and the broader crypto market are on track to snap their seven-month winning streak with their worst monthly decline since November 2022, when crypto exchange FTX imploded.
Smaller cryptocurrencies suffered an even deeper correction, with altcoin darlings SOL, dogecoin (DOGE), avalanche (AVAX) lower by 35%-40% this month.
Overall, the total crypto market capitalization shed nearly 18% of its value, recording its biggest decline since June 2022, TradingView data shows.
The debut, however, was more successful than at first impression considering that the Hong Kong ETF market is only a fraction of the U.S. market size, Bloomberg Intelligence senior ETF Eric Balchunas analyst pointed out.


Current U. s. Economic data may force the Federal Reserve to issue more aggressive forward guidance.

Author: Krisztian Sandor.

30 April 2024, 9:17 p.m. m. UTC.

Bitcoin is headed for its worst month since November 2022 after losing more than 16 percent in April.

Ledn CIO predicted that Bitcoin may fall to the mid-to-low $50,000 range.

According to an ETF analyst at Bloomberg Intelligence, the debut of the Hong Kong spot crypto ETF wasn’t as bad as it was reported to be.

Because of concerns about interest rates and what seemed to be a weak debut of spot ETFs in Hong Kong, traders were more than willing to sell on Tuesday, causing bitcoin (BTC) to plunge below $60,000. It may be time to label this cryptocurrency correction a bear market.

After falling more than 5% in the last day, Bitcoin reached a low of $59,100 in the afternoon, which was its lowest level since late February. Over the same period, the broad-market CoinDesk 20 Index (CD20) fell by 6 percent while ether (ETH) and solana (SOL) suffered losses of 7 to 8 percent.

Since hitting its all-time high of over $73,000 in mid-March, Bitcoin has now dropped by about 20 percent.

Additionally, traditional markets suffered following a wave of U. s. Economic data released on Tuesday morning indicated faster price pressures and slower growth, giving rise to a stagflationary atmosphere. The SandP 500 saw a 1 point 6 percent decline for the day, while the Nasdaq lost 2 percent.

According to recent reports, the U.S. s. economic indicators and rising inflation sharply reduced U.S. s. Joel Kruger, a market strategist with LMAX Group, noted in a report released on Tuesday that the digital asset market is being negatively impacted by expectations of a Federal Reserve interest rate cut.

Despite investor calls for more accommodation, Kruger stated, “We continue to see evidence of the Fed needing to be leaning back to a higher for longer policy outlook.”. In conjunction with the U. s. As the dollar gains popularity again, it is also beginning to positively affect cryptocurrency assets. “.

Month of the worst since FTX.

With Tuesday’s drop, Bitcoin and the cryptocurrency market as a whole are poised to end their seven-month winning run and experience their worst monthly decline since the collapse of the cryptocurrency exchange FTX in November 2022.

In the final hours of the month (UTC time), ether is down 18% and bitcoin is down more than 16 percent through April. Smaller cryptocurrencies experienced an even more severe decline this month, with altcoin favorites SOL, dogecoin (DOGE), and avalanche (AVAX) falling by 35–40%.

The entire market capitalization of cryptocurrencies decreased by almost 18%, marking the largest decline since June 2022, according to TradingView data.

There may be more decline in bitcoin.

Chief investment officer of the cryptocurrency lending company Ledn, John Glover, stated, “I’m expecting a sell-off to the mid-to-low $50,000 region [for BTC], which should prove to be a buying opportunity.”.

Lower interest rates in the summer also suggest lower prices due to seasonal effects, according to K33 Research.

An investor who chooses to purchase Bitcoin on the May open and exit the transaction on the.

Vetle Lunde, an analyst at K33, stated that the September close would have resulted in a cumulative return of -29 percent over the previous five years. On the other hand, a trader who bought at the October open and sold at the April close would have made a whopping 1,449 percent profit. ****.

The debut of the Hong Kong ETF was (not so) bland.

Just over $10 million worth of trading volume on the first day of trading for the Hong Kong-listed spot bitcoin and ether ETFs failed to impress market participants.

But given that the Hong Kong ETF market is a small portion of the U.S., the debut proved more successful than anticipated. s. market size, noted Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence.

According to Balchunas, “if you localize numbers, this was big.”.

According to Bloomberg data, ChinaAMC’s bitcoin product alone raised over $123 million in assets during its first trading session, ranking it as the sixth-best ETF launch over the previous three years and placing it in the top 20% of all ETFs.

The Hong Kong-listed ETFs arrived at a “good time,” according to Balchunas, and they might be able to counteract the withdrawals from U.S. s. items that have recently experienced a slowdown.

Alpher, Stephen, editor.

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