Bitcoin Faces $182 Million Outflow as ETF Demand Cools: Bloomberg
April witnessed a significant shift in the market dynamics of Bitcoin, which faced significant outflows totaling $182 million from 11 US spot ETFs. This marked a strong departure from the previous month, when the cryptocurrency achieved a solid inflow of $4.6 billion in March.
US exchange-traded funds’ enthusiasm for Bitcoin has noticeably waned, contributing to Bitcoin’s worst month since November 2022, with a significant 14% drop in April. Despite the anticipation of the Bitcoin halving in April, which has historically been known to increase prices, its impact has been minimal as demand for risky investments has diminished as hopes for a Federal Reserve interest rate cut have faded.
Hong Kong ETF Debut Disappoints
Expectations were high in the market that Bitcoin’s momentum would revive with the launch of Bitcoin and Ether spot ETFs, especially in Hong Kong. However, investors’ confidence did not improve at the debut on Tuesday as the six new ETFs in Hong Kong saw minimal trading volume in their first sessions.
This moderate demand is in stark contrast to the strong outflow of US spot Bitcoin products. Analysts attribute this disappointment to inflated expectations and predict volatility will increase in the future. They note that best-case inflow estimates from Hong Kong ETFs are significantly lower than their US counterparts, indicating a prolonged period of uncertainty in the market.
So read: HK Bitcoin and Ethereum ETF’s $12 Million Volume Is Impressive: Bloomberg Analyst
Bitcoin Technical Analysis and Price Outlook
According to parofix’s Analysis, Bitcoin price is currently at a critical juncture; A breach of the $62,000 support level causes the focus to shift to the next important level at $60,000. Technical indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are pointing to a bearish divergence, potentially diving below $60,000, raising the possibility of further declines.
Investors are advised to be careful and consider opening a short position in Bitcoin in the short term. Potential support levels at $56,000 and $52,000 present attractive opportunities for retail investors to accumulate Bitcoin at discounted prices. This strategic move could signal a potential bottom for Bitcoin price before the bullish trend re-emerges, offering a glimmer of hope amid the current market turbulence.
So read: Gold Price Drops Ahead of US FOMC Meeting, Will Bitcoin Follow?
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