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Why is Bitcoin Down Today? As retail investors’ concerns around BTC price grow amid post-halving downtick, could Bitcoin ETF inflows explain why BTC is down?
A week into the post-halving world, U.S. Bitcoin spot ETFs are in a whirlwind, hemorrhaging $120.6 million in net outflows.
This is a sharp detour from the consistent influx they enjoyed and answers the question, ‘Why is Bitcoin down today?’
This turn of events has sparked heated debates, spotlighting the ETFs’ role in Bitcoin’s pre-halving rally and the looming shadow that we may head to $50,000 BTC (or lower).
Coinglass data shows $200+ million liquidated in 24 hours, with $37.83M and $34.17M liquidated from long positions in Bitcoin and Ethereum respectively.
The Grayscale Bitcoin Trust (GBTC) bore the brunt, with a $130.4 million withdrawal marking the most significant retreat.
Conversely, Fidelity’s Wise Origin Bitcoin Fund (FBTC) found favor, raking in $5.61 million against the current.
Meanwhile, Bitcoin stumbled below the $64,000 mark triggering a domino effect of liquidations throughout the crypto realm.
The aftermath was brutal—over $200 million vanished from the market in less than a day, leaving investors in a precarious dance with volatility, as Bitcoin and Ethereum shouldered heavy hits.
Deep Dive: Why is Bitcoin Down Today, Is More Coming?
Call it a commentator’s curse, but BlackRock’s iShares Bitcoin Trust (IBIT), which had a meteoric rise in January—piling up an eye-watering $15.5Bn in just 71 days—hit an unexpected flatline with zero inflows on April 24th. The streak is over..
Most Bitcoin spot ETFs are recording a dry spell, with Fidelity’s FBTC and ARK 21Shares Bitcoin ETF (ARKB) the only two still receiving inflows.
(Farside)
This downturn was indiscriminate through the market, dragging altcoins like Solana, Dogecoin, Cardano, Shiba Inu, and Avalanche down close to double-digit percentages each, underscoring the widespread impact of market sentiment shifts.
As for Ethereum ETFs, the SEC hit the pause button on Wednesday for another 60 days on any thumb-ups for ETH ETFs, signaling they’re threading cautiously around the expansion of the crypto ETF universe.
Earlier this week, Hong Kong approved Bitcoin and Ethereum spot ETFs to start trading on April 30.
The Bottom Line: Expect More Downturn For Crypto
Bitcoin ETFs giveth, and they taketh away, but they aren’t the only reason for ubiquitous bearish sentiment.
Analysts at 99Bitcoins have told you that historically, Bitcoin crashes after a halving event – ramping up usually 60 days (if not more) after such an event.
Also, with the Israel-Palestine tensions, eyes aren’t on cryptocurrency but on how the situation in the Middle East could impact markets this year.
For now, ETF holders seem to be paper handing BTC. But seeing as this is the first cycle who can blame them?
Don’t rule out more downturns across the crypto markets from here ahead of a return to new highs.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
