Source: Golden Ten Data
According to data compiled by foreign media, there was a net outflow of 86 million US dollars from the spot Bitcoin ETF on Monday, and changes in the Federal Reserve's interest rate cut expectations are also impacting the coin industry.
Bitcoin prices fell sharply this week as market demand for US spot Bitcoin ETFs cooled and bets on the Federal Reserve easing monetary policy declined.
Before the European market on Tuesday, Bitcoin fell sharply near the 70,000 US dollar mark. It once fell by more than 4% during the day, but has now rebounded.
The sharp rise in cryptocurrencies this year is losing momentum, as lingering US price pressure has caused investors to restrain their bets on the Federal Reserve's interest rate cuts, thereby boosting US Treasury yields and the dollar. For speculative markets such as digital assets, this is probably an even more difficult background to rise.
Stefan von Haenisch, head of trading at OSL SG Pte, said that changes in the market's perception of the Federal Reserve have had an impact on cryptocurrencies. With the advent of this week, cryptocurrencies have sold off, and no corner is unaffected, especially those tokens that have outperformed Bitcoin in the past 6 months, such as meme coins.
Since peaking at $7,3798 in mid-March, Bitcoin has fallen by around 10%. The phenomenon of large sums of money flowing into US spot Bitcoin ETFs has abated, which is also putting pressure on the world's largest digital asset.
According to data collected by foreign media, investors made a net withdrawal of 86 million US dollars from these 10 spot ETFs on Monday. Since their launch on January 11, these products have attracted around $12 billion in capital.
Bitcoin's correlation with other risk-sensitive assets means that a broader market catalyst is also critical. The Dow Jones Industrial Average Price Index and the S&P 500 Index itself are also at record highs. Furthermore, a large amount of economic data will be released this week. The data may affect people's expectations about the pace of interest rate cuts by the Federal Reserve. This macro outlook is also important for Bitcoin.
DACM co-founder Richard Galvin said that in the past 12 hours after the release of the latest US economic data, the crypto market seemed “weak.”
According to data released yesterday, the US manufacturing industry unexpectedly expanded for the first time since September 2022, and investment costs have risen. After the release of the report, the market's expectations for the Fed's easing this year fell to around 65 basis points, lower than the expectations of policy makers.
This month, for Bitcoin, the “halving” event may be a major benefit, that is, the supply of new Bitcoin tokens will be cut in half. Some traders regard this quadrennial event as a major benefit for Bitcoin. In particular, at a time when market demand for Bitcoin is increasing due to the adoption of spot Bitcoin ETFs, the “halving” is expected to occur 18 days later.
However, there are also Wall Street analysts, including J.P. Morgan Chase, who believe that one of the most anticipated catalysts for Bitcoin's further rise may eventually cause its price to fall. Given that the coin has quadrupled since early 2023, “fear of heights” is likely to intensify, and further increases will be difficult to achieve.
editor/tolk