Bitcoin ETFs are gaining support from crypto traders following the disappointment of BTC halving expectations. The crypto market had a relatively quiet month in April after a strong first quarter surge that saw Bitcoin reach a record high of $73,750.
As of May 10, 2024, BTC has experienced a decline and is currently trading just above $60K. This drop can be attributed to increasing geopolitical tensions and conflicts. The decentralized nature of cryptocurrencies allows for swift responses to geopolitical events, surpassing the speed of stock reactions.
The current value of Bitcoin stands at $60,325.53, reflecting a 1.0% decrease compared to an hour ago and a 2.7% decrease since yesterday. It is also 2.5% lower than its value a week ago.
The global crypto market cap currently stands at $2.35 trillion, with a decrease of 2.27% in the last 24 hours. However, compared to one year ago, there has been a significant increase of 97.31%.
Bitcoin’s market cap is currently at $1.19 trillion, indicating a dominance of 50.56%. Stablecoins, on the other hand, have a market cap of $161 billion, representing a 6.82% share of the overall crypto market cap.
The Bitcoin halving event occurs every four years, and there is speculation about a potential price increase for the crypto in the coming months following the recent halving in April. The decreased supply of Bitcoins could lead to increased scarcity.
Since the introduction of the first Bitcoin ETFs on January 11, the asset has experienced a remarkable surge of over 50%, reaching a new all-time high of nearly $74,000. These ETFs provide a regulated and convenient way for both retail and institutional investors to enter the crypto market, improving liquidity and price stability.
Bitcoin is often seen as a hedge against inflation due to its limited supply, in contrast to traditional fiat currencies that can be endlessly issued by central banks. Some market observers view Bitcoin as a valuable asset that can protect wealth during times of inflation. However, it is important to note that the crypto space is highly unpredictable.
Bitcoin ETFs have seen a decline in investor interest in recent weeks, with U.S. Bitcoin ETFs experiencing a total outflow of $230 million in the last ten days. This has raised concerns about the potential negative impact on the price. On May 1, Bitcoin ETFs experienced their largest one-day outflow of $563.7 million, coinciding with a 5% decrease in Bitcoin’s price.
The initial excitement surrounding the launch of Bitcoin ETFs has now turned into a significant pool of potential sellers, according to critics like Schiff. This increases the risk of further price declines. However, some other ETFs, including ARKB, BTCO, and EZBC, have seen positive movements with inflows of $4.4 million, $2.2 million, and $1.8 million respectively.
The recent drop in prices can be partly attributed to the increase in crypto liquidations, which amounted to $145 million, according to data from Coinglass.
