Although Bitcoin experienced its fourth halving, April was a traumatic month for the leading cryptocurrency. What are the reasons for the heavy declines?
He Bitcoin falls 15.1% in April and recorded its biggest drop since November 2022, when it was the last peak of the bear market and the leading cryptocurrency plummeted 16%. The bearish rally of the leading cryptocurrency is explained by the rearrangement of the market after experiencing its room halving and the decline of euphoria exchange traded funds Americans.
The halving alone was not enough to drive a sustained uptrend in the near term and the leading cryptocurrency stuck below $60,000 levels after a week of sustained selling during Wall Street trading hours.
While, Ethereum It plummets 18% in the last 30 days and pierces US$3,000. On the other hand, among the stablecoins those who gave in the most stand out Dogecoin with a drop of 37% in April and Solarium with one of 37%.
How does the decline in reserves impact?
The market fears that The lowest rates arrive later than anticipated at the beginning of the year. On the other hand, like the United States in January, Hong Kong is about to open the doors to Bitcoin ETFs and that could lead to an increase in liquidity and possibly stabilize prices.
The United States Federal Reserve (Fed) began its meeting this Tuesday monetary politics two days, in which he is expected to keep rates in the range between 5.25% and 5.5%, while launching a hard-line message. Depending on the tool FedWatch CME Group, the probability of a rate cut in September was estimated only a 44%.
BesidesBTC spot exchange-traded funds (ETFs) have seen significant net outflows, which raises uncertainty about its future. The correlation between the prices of these ETFs and inflows has decreased, suggesting that investors are paying more attention to macroeconomics rather than cryptocurrency market movements.
Source: Ambito
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