The Spot Bitcoin ETFs have been facing a decline in demand since the beginning of the month, leading to significant outflows recorded on April 26. Investors have been pulling out of these ETFs, with Grayscale’s Bitcoin Trust (GBTC) experiencing the largest outflows of $139.4 million. Other funds such as Ark Invest, Valkyrie, Bitwise, and Fidelity’s Wise Origin Bitcoin Fund have also seen outflows ranging from $6 million to $31.3 million.
The outflows from Spot Bitcoin ETFs have had a domino effect on the broader crypto market, causing Bitcoin’s price to succumb to unfavorable market conditions. The increased selling pressure resulting from these outflows has led to significant price declines in Bitcoin, putting the bears in control. Data from Coinglass shows that more Bitcoin longs than shorts have been liquidated in the last 24 hours, further indicating the negative impact of the outflows on the market.
The release of economic data, such as the US Gross Domestic Product (GDP) growth rate of 1.6% in the first quarter, has also affected Bitcoin’s price. The lower-than-expected GDP growth rate diminishes hopes of rate cuts this year, leading to a drop in Bitcoin’s price below $63,000. Additionally, the upcoming release of Personal Consumption Expenditures (PCE) inflation data on April 26 could further impact the market sentiments. If the PCE report shows higher inflation than expected, it could raise concerns about the unlikelihood of rate cuts, potentially leading to a negative impact on the crypto market.
Investors are closely monitoring the Federal Reserve’s stance on interest rates, as it has significant implications on risk assets, including cryptocurrencies. A hawkish stance by the Federal Reserve could create uncertainty in the market and negatively impact the crypto market. With the current market conditions and economic data releases, investors are cautious about their investment decisions in the crypto space.
The decline in demand for Spot Bitcoin ETFs and the subsequent outflows have caused ripples in the broader crypto market, affecting Bitcoin’s price and investor sentiment. Economic data releases and the Federal Reserve’s stance on interest rates further contribute to the uncertainty in the market. Investors are advised to conduct thorough research and analysis before making any investment decisions in the volatile crypto market.
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