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Bitcoin (BTC) falls below $57,000: the worst month since the collapse of the FTX

TL; DR

  • Bitcoin experiences the worst monthly performance since the collapse of FTX in 2022, with a drop in value of almost 17.35% in April.
  • Loss of interest in interest rate cuts by the US Federal Reserve and risk aversion contribute to the outflow of capital from BTC-related products.
  • BTC’s decline is dragging down the entire crypto marketwith Ether experiencing its biggest monthly drop since June 2022 and company shares plummeting.

The crypto market is experiencing turbulent times, marked by the decline in the price of Bitcoin and a range of factors that have eroded investor confidence. In April, BTC posted its worst monthly performance since the collapse of Sam Bankman-Fried’s FTX in 2022.

During this period, Bitcoin’s value fell by almost 17.35%, reaching its lowest level since late February. This downward trend has raised concerns among investors, especially those who entered the market during the 2022 and 2023 recessions, as well as ETF investors who witnessed the bullish price rally since early 2024.

According to the latest Coinmarketcap data Bitcoin (BTC) is trading at $57,448, marking a daily decline of 6.2%Yesterday morning it was trading above $60,000. On a weekly basis, the cryptocurrency’s decline is 13.66%, leaving it almost $10,000 below its values ​​7 days ago. At the monthly level, the loss is more than 17.3%. After a dismal month, BTC fell $16,300 from its ATH, from $73,750.

The declining interest in interest rate cuts by the US Federal Reserve and the loss of appeal of risky investments have contributed to the outflow of capital from Bitcoin-related products. In particular, ETFs saw net outflows of $182 million in Aprilcompared to net inflows of $4.6 billion in March.

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Bitcoin falls and drags everything with it

The reject consequences for the entire market in general. Ether, the second largest cryptocurrency, saw an 18% drop in Aprill, marking the biggest monthly drop since June 2022. Regulatory uncertainty, including the SEC’s review of Ether, combined with the potential rejection of ETFs and a recent lawsuit against Consensys, have contributed to ETH’s volatility.

In addition, shares of companies related to crypto mining, such as Marathon Digital Holdings Inc., also suffered. and Riot Platforms Inc., huge losses. MicroStrategy Inc., known for its Bitcoin business strategy, faced an 18% decline after reporting a first-quarter loss due to an impairment on the value of its BTC holdings.

On the macroeconomic front, while no changes in interest rates are expected, there is a possibility that the Federal Reserve will not cut rates for the rest of the year. which could have a negative impact on interest rate sensitive assets such as cryptocurrencies.