Bitcoin’s Crunch: A Deeper Look at the Recent Price Drop and Market Impact

Hello, everyone. Welcome to today’s Blockchain Daily News. Today is May 7th,2024. I’m your digital host, Amy. The headline we’re focusing on today is Bitcoin’s crunch. What’s different? On April 30th, bitcoin fell below $60,000. It was the worst monthly for performance in two years. The lowest fell below $58,000, falling more than 8% in a single day. According to Coinblast data, approximately 117,000 people liquidated their positions within 24 hours with a total liquidation amount of $381 million. China Fund News wrote that bitcoin has fallen by about 16% in April, which is the worst month since the bankruptcy of FTA, the world’s second largest crypto currency exchange in November 2022. And the optimism surrounding the US bitcoin spot ETF is also fading. The frenzy over US bitcoin spot ETX pushed bitcoin prices to a record high of nearly $74,000 in March. But demand for riskier investments has taken a hit as expectations for a Fed rate cutup window with inflows into bitcoin products has been significantly reduced.

According to data, as of April 29th,11 Bitcoin Spot ETX had a net outflow of $182 million. 1. It is worth noting that these ETX received a net info of $4.6 billion in March. According to another report from 3 news on may fast, the met outserve of the US spot bitcoin ETF was as high as $559.5 million. Very well. Gibet had a net outflow $36.9 million, the first time it had a single day net outserve. Fidelity at BGC had a net outlet of $191.1 million, which has been a net outflow for five consecutive trading days.

According to the latest data from bank of America, investors withdrew $600 million from crypto currency funds in the weekend in may fast, the largest amount since June 2022.

On May 2nd, affected by the Federal Reserve’s decision to maintain the benchmark interest rate unchanged in the range of 5.25% to 5.50%. Bitcoin rose all the way from the support level of $57,000, hitting a match maximum for $59,590. It rose 3.2% in 24 hours.

On April 20th, bitcoin completed its full carving and committed after 10 days. It has attracted special attention from global investors, Wall Street institutions and authoritative media. What are the differences from past crashes is the focus of their attention. I think there are two points. The first is that Bitcoin has now become a compliant asset, attracting global compliance funds. Once it plummets the degree of public attention it triggers will become more widespread under 4. Secondly, Bitcoin is more closely integrated with macro factors and people’s focus is shifting from the past bitcoin harving to the consequences of monetary and fiscal policies. Industry insiders have previously stated that we may be entering a new stage of the macroeconomic cycle, and macroeconomic factors are becoming more critical factors affecting the price trend of BTC, even if the direct impact of the Bitcoin harving on the price is not as large as the 4, it is fairly exciting for Bitcoin to demonstrate its immutability in the macro environment.

The reason given by JP Morgan for bitcoin’s plunge was retrenched Senate. JP Morgan Chase said in a report that the crypto market has seen significant profit taking in recent reach with retail investors playing a larger role in the sell off than institutional investors.

Chiếc xe nổi trên biển trang nhiều người. Perfectly. There was an outflow of $167 million from the Grayscale Bitcoin Trust, which has seen outflows exceed $17 billion since converting to an ETF in January. The reason given by Reuters is that it is affected by the reduction in expectations for the Federal Reserve to cut interest rates. The view among investors that the Federal Reserve may not cut interest rates at all this year is taking hold, which will hit interest rate sensitive assets such as crypto currency and emerging markets, including stocks and bonds and even commodities. According to reports, Bitcoin’s sharp fluctuations may be a precursor to border changes in global market risk appetite. Bitcoin has fallen about 4% in the past few days after plunging nearly 16% in April, with some investors looking to bitcoin trading for clues about changing liquidity dynamics that could hit other assets. Charlie Morris, chief investment officer of Bytetree Asset Management, said that Bitcoin is our favorite test indicator. This is a warning of trouble ahead for financial markets, but we can be confident that it will rebound at some point. Market analyst Collect Capital pointed out that Bitcoin has once again repeated the history of 2016 in this cycle, recently falling below the low of the current reaccumulation range. In 2016, the deviation was minus seventeen percent. And so far in 2024, the deviation has been minus 6. Okay. He added that the 2016 downtrend lasted for about 21 days after the halving before turning upward, which means that Bitcoin was in the danger zone for another eight days. So its price strength may continue to fluctuate if there are differences in the Bitcoin trash. I think the biggest difference in this round is the difference between the bitcoin spotting to f before approval and after approval, mainly reflected in the compliance or non compliance behind the flow of funds to Bitcoin. Transparent or opaque. If the audience investment group large or small, high or low risk tolerance. On January 11, the United States approved 11 bitcoins for DTS, including Blackrock and Fidelity, which can be regarded as a landmark event in the development of the currency circle. This event means that Bitcoin has officially landed on Nasdaq, New York Stock Exchange and Chicago Board Options Exchange. Securities traders in all countries around the world can buy and sell Bitcoin, etc. Through the above free exchanges. A large number of funds from traditional Wall Street financial institutions and global investors have flowed into Bitcoin in a client manner, injecting unprecedented liquidity into Bitcoin, thus pushing the price of Bitcoin to reach historical high. This may also be the significance of the speculation that the Bitcoin Spot ETF will be passed since October 2020. It is also one of the important narratives of Bitcoin’s new cycle compliant funds. Looking back at the narrative history of bitter points, four cycles behind each full market cycle narrative, there must be incremental funds flowing into Bitcoin and then Bitcoin will start a bull market. The narrative of the first three cycles is that through continuous technological innovation, a non compliant and unique way was used to attract OTC capital flows to Bitcoin, pushing the price of Bitcoin to hit record highs one after another. And it is precisely because of this uniqueness that it has attracted the attention of Wall Street institutions and global investors, bitcoin has become a compliant asset. But how to tell the story of compliant asset at present? In addition to unfolding according to the past historical cycle, Bitcoin is also integrating more closely with macro factors in a compliance capacity. What will happen in the future, we’ll see. All right. Today’s blockchain news headlines. And here I am, a digital persona created entirely by artificial intelligence, AI. If you enjoyed my program, please like subscribe and share my videos with your friends. All the visuals and sounds you see are produced through the decentralized aigpu Artificial Intelligence platform. Aigpu is genuine AI technology, accessible to everyone. See you tomorrow.