Bitcoin Drops to $56,600 as ETFs See 5 Consecutive Days of No Inflows
The cryptocurrency market continues its days-long decline under selling pressure from ETFs. At the beginning of May, Bitcoin suddenly dropped to $56,600, officially falling below the "60K" mark.
Bitcoin Drops to $56,600 as ETFs See 5 Consecutive Days of No Inflows
In the early afternoon of May 1, 2024 (Vietnam time), Bitcoin sharply declined from $61,000 to only $56,600, marking its lowest level since late February.
BTC has dropped 22% from its ATH of $73,700 recorded in March. Despite a 16.8% monthly increase last month, the king coin has now ended its seven-month consecutive growth streak, even registering its strongest monthly decline since November 2022 - during the FTX crash.
Bitcoin's price performance by month, CoinGlass screenshot at 03:30 PM on May 1, 2024
Following suit is Ethereum. ETH quickly lost the "3K" mark, dropping to only $2,817.
As the leading coins dropped nearly 10%, other altcoins followed in a scene of "bloodbath".
Market turmoil for top cryptocurrencies at 03:30 PM on May 1, 2024
The main reason behind this is the lack of inflows from Bitcoin ETFs over many days. Previously, ETFs were the driving force behind market price increases, but today, the outflow from ETFs is the major pressure.
BlackRock's IBIT has not recorded inflows for 5 consecutive days, officially ending a 71-day inflow streak.
Source: Farside
New ETFs traded in the Hong Kong market, despite high expectations, were not strong enough to support the market uptrend.
In May, we are likely to witness the SEC not approving the Ethereum spot ETF, further adding to the prevailing pessimism across the industry, especially during the "Sell in May and Go Away" period.
CNN: JPMorgan and Goldman Sachs expect the first cut in July, while Wells Fargo is betting on September. Bank of America doesn’t expect the first cut until December. Some Fed policymakers, meanwhile, have even floated the possibility of a rate hike, instead of a cut.…
— Wu Blockchain (@WuBlockchain) May 1, 2024
Furthermore, another macroeconomic information that could impact the market is the possibility of the Fed maintaining interest rates after the upcoming meeting early on May 2.
In the past 4 hours, there has been a liquidation value of $161 million, with nearly 98% in long positions.
Within the 24-hour window, there has been $500 million in liquidation, with 88% or $420 million in long positions.
Statistics of cryptocurrency market liquidation data in the past 24 hours, CoinGlass screenshot at 03:10 PM on May 1, 2024
