China Fund News reporter Ivan
On the last day of April, the price of bitcoin fell below $60,000, the cryptocurrency's worst monthly performance in nearly two years.
At the end of the U.S. stock market, Bitcoin fell below $60,000 intraday, and the trading price of some platforms fell below $59,200, down more than $5,000 or more than 8% from the daily high. As of press time, Bitcoin is hovering around $60,000 against the US dollar, down more than 5% in the last 24 hours.
According to cryptocurrency testing website Coinglass, about 117,000 people liquidated their positions in the last 24 hours, with a total amount of $381 million.
With a drop of about 16% in April, optimism is fading
In fact, Bitcoin lost more than $10,000 in April, down about 16%, its worst month since the collapse of FTX, the former world's second-largest cryptocurrency exchange, in November 2022.
And the optimism surrounding bitcoin in U.S. exchange-traded funds (ETFs) is also fading.
The frenzy for Bitcoin ETFs in the U.S. pushed Bitcoin to a record high of nearly $74,000 in March, but inflows into Bitcoin products have been significantly reduced as demand for riskier investments has taken a hit as expectations for the Fed's interest rate cuts have fallen. According to Bloomberg data, as of April 29, 11 bitcoin spot ETFs had a net outflow of $182 million for the month. Notably, these ETFs had a net inflow of $4.6 billion in March.
美股加密货币相关公司的股票跌幅则超过了比特币跌幅。 Bakkt Holdings跌32.63%,MicroStrategy跌17.63%,Marathon Digital Holdings Inc.跌10.93%,CleanSpark跌10.25%,Riot Platforms跌8.75%。
The market had been very much anticipating the quadrennial halving, but since April 19, the impact seems to have been minimal, and it has not continued to push up the price of bitcoin as expected.
"Stagnation inflation" seems to be a big reason for Bitcoin's collapse this month. Cryptocurrency trading firm QCP Capital noted in a research note that the threat of "stagnant inflation" is very real. Weaker-than-expected U.S. GDP data points to slower economic growth, while a high core personal consumption expenditures (PCE) index means inflation remains a thorn in the Fed's side, the report wrote.
According to BeInCrypto, bitcoin analyst Murad Mahmudov predicts that bitcoin's choppy move could continue into the summer. During this time, investors will be looking for clues to determine whether the current trend has bottomed out or has peaked.
Investors are turning their attention to cryptocurrency products in the Hong Kong market
Despite the pessimistic forecasts of some analysts, well-known Bitcoin entrepreneur Lark Davis is still bullish on the future of the industry. Citing the news of Morgan Stanley's participation in the Bitcoin spot ETF, he pointed out that traditional financial institutions are increasingly accepting cryptocurrencies.
He also believes that Hong Kong's approval of the listing of Bitcoin and Ether spot ETFs could generate significant interest from institutional investors in Asia. If you're still pessimistic, you need to know that, and more and more institutional investors are jumping in, Davis said.
According to data from the Hong Kong Stock Exchange, as of April 30, the total trading volume of the first batch of virtual asset spot ETFs issued in Hong Kong was about HK$87.58 million, of which ChinaAMC products accounted for nearly 57%. In terms of Bitcoin (BTC) spot ETF trading, the trading volume of ChinaAMC's ETFs was HK$37.16 million, Harvest was HK$17.89 million, and Bosera was HK$12.44 million. In terms of Ether (ETH) ETF trading, the trading volume of ChinaAMC's ETFs was HK$12.66 million, Harvest recorded HK$4.95 million, and Bosera was HK$2.48 million.
According to HKEX, the launch of virtual asset spot ETFs will increase the range of products in the Hong Kong market, provide investors with more choices, and strengthen Hong Kong's position as a leading ETF market in Asia.
Rebecca Sin, an analyst at Bloomberg Intelligence Tank, expects Hong Kong-listed cryptoasset ETFs to potentially be able to accumulate $1 billion over the next two years.
Editor: Captain
Review: Muyu