April witnessed a significant shift in Bitcoin’s market dynamics as it faced substantial outflows totaling $182 million from 11 US spot ETFs. This marked a stark departure from the previous month, where the cryptocurrency enjoyed a robust inflow of $4.6 billion in March.
The excitement surrounding US exchange-traded funds for Bitcoin has noticeably waned, contributing to Bitcoin’s worst month since November 2022, with a notable 14% decline in April. Despite the anticipation surrounding the Bitcoin halving event in April, historically known to boost prices, its impact was minimal as demand for risky investments dwindled amidst fading hopes for Federal Reserve interest-rate cuts.
Hong Kong ETF Debut Disappoints
Expectations were high in the market for a resurgence in Bitcoin’s momentum, particularly with the launch of Bitcoin and Ether spot ETFs in Hong Kong. However, investor confidence was not bolstered by the Tuesday debut, as the six new ETFs in Hong Kong saw minimal trading volume during their initial session.
This tepid demand stands in stark contrast to the robust debut of US spot-Bitcoin products. Analysts attribute this disappointment to inflated expectations and predict increased volatility in the future. They note that the best-case inflow estimates from Hong Kong ETFs are significantly lower than those of their US counterparts, suggesting a prolonged period of uncertainty in the market.
Also Read: HK Bitcoin & Ethereum ETF $12M Volume Is Impressive: Bloomberg Analyst
Bitcoin Technical Analysis and Price Outlook
According to Analysis by CoinGape, Bitcoin’s price is currently navigating a critical juncture, with the breach of the $62,000 support level prompting a shift in focus to the next significant level at $60,000. Technical indicators, such as the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), point towards a bearish trend, heightening the likelihood of further declines, potentially extending below $60,000.
Traders are advised to exercise caution and consider shorting 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 may signal a potential bottoming of Bitcoin’s price before a bullish trend reemerges, offering a glimmer of hope amidst the current market turbulence.
Also Read: Gold Price Tumbles Ahead US FOMC Meeting, Bitcoin to Follow?
The post Bitcoin Faces $182M Outflows Amid Cooling ETF Demand: Bloomberg appeared first on CoinGape.
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