Source: Wall Street See News Author: Huang Yu
Since hitting a historical high of $73,000 in March, bitcoin has continued to decline. In the second quarter, the inflow of funds into bitcoin ETFs fell by 80% compared to the previous quarter, with only $2.6 billion. Even the founder of PayPal has sold most of his bitcoin position and is no longer playing!
The bitcoin hype appears to be fading.
Since reaching a historic high of $73,000 in March, as of Monday, Bitcoin has fallen by about 14% from its peak, with a cumulative decline of about 10% in the second quarter, a sharp contrast to the 57% surge in the first quarter of this year.
At the same time as Bitcoin's decline, the pursuit of Bitcoin ETF has also cooled. According to data from CoinShares, only about $2.6 billion flowed into Bitcoin ETF during the second quarter of this year, compared to about $13 billion in the first quarter, a drop of 80%.
Another bad news is that Peter Thiel, the founder of PayPal and a major player in the crypto world, revealed on the 30th that he has sold most of his Bitcoin holdings. Earlier, Thiel's venture capital firm, Founders Fund, bought $100 million worth of Bitcoin in 2023, when the price was still around $30,000.
Nowadays, Thiel has expressed disinterest in bitcoin as a "cyberpunk, libertarian thing," but still holds a small amount of bitcoin. It may still have some room for growth in the future, however, the timing of the increase is uncertain and it will be a fluctuating and rocky journey.
With Bitcoin's continued decline and the departure of important players, investors cannot help but wonder whether the risk appetite for momentum trading of assets like Bitcoin will become more severe?
"Many in the market are expressing concerns from a macro perspective, as we have seen in some other asset classes, and there is some short-term uncertainty reflected in the cryptocurrency market," said Austin Reid, global business head of FalconX.
Matthew O’Neill, research director at Financial Technology Partners, is relatively bullish on Bitcoin's future prospects, believing that it is normal for Bitcoin to experience a pullback after a big rally. O’Neill pointed out: "When the US Bitcoin ETF was launched at the beginning of the year, it attracted a lot of money, including a lot of professional investors who wanted to invest in Bitcoin, but only wanted to buy through institutional channels, so the relevant ETF is the best choice."
For investors who still want to invest in Bitcoin ETF, O'Neill says they may be waiting for Bitcoin to regain its upward momentum before entering the market.
Editor/Lambor