Bitcoin declines amid speculations of crypto market peak
Bitcoin’s value is slowly declining, marking a significant shift in the digital asset market worth over US$500 billion (18.5 trillion baht). This has led to speculation about the possible peak of the cryptocurrency rebound. The token is on the brink of a five-day losing streak, which hasn’t been seen since October of the previous year.
The overall crypto market has seen a 17% decrease, falling to US$2.4 trillion, following Bitcoin’s record high of US$73,798 in mid-March, as per data obtained from CoinGecko and Bloomberg News.
The dwindling inflows into US spot-bitcoin exchange-traded funds (ETFs) and the potential for sustained high Federal Reserve interest rates are collectively dampening digital assets.
The introduction of Hong Kong crypto ETFs last week did little to enhance the atmosphere.
The American funds had seen a significant influx of cash following their launch in January, propelling Bitcoin to its highest point ever. The group currently has a net inflow of US$11.8 billion, despite a US$169 million outflow this month, said Benjamin Celermajer, director at digital-asset investment manager Magnet Capital.
Speculators hoping for continued strong ETF flows are now being “washed out of the market.”
He, however, assured that the bull market is not over and predicts Bitcoin will reach new heights by the end of 2024.
There are indications that investors anticipate fewer significant Bitcoin fluctuations, in the derivatives market, compared to the volatility that accompanied the launch of the US ETFs.
The T3 Bitcoin Volatility Index, which uses options prices to predict expected 30-day token fluctuations, and the equivalent gauge for the second-ranked digital asset Ether, are both at approximately two-month lows.
As of 7.10am in London on Thursday, Bitcoin’s value remained relatively steady at US$61,660, while Ether saw a 2% increase to US$3,009, reported Bangkok Post.
In similar news, The price of Bitcoin plummeted to a two-month low, coming in at approximately US$57,000. This followed comments by the Federal Reserve chairman, Jerome Powell, suggesting that interest rates would remain high for an extended period to combat persistent inflation.
