The cryptocurrency market began to retreat after recovering strongly during Asian trading hours following the launch of spot Bitcoin ETFs in Hong Kong on Monday. However, later in the day, the decline in the US market poured cold water on the cryptocurrency market recovery, with Bitcoin price losing over 4.5% and falling below the $62,500 level.
Bitcoin price has fallen
As of 09:00 on Tuesday, April 16, the Bitcoin (BTC) price is trading at $62,375.46, down 5.95% compared to the previous day. The transaction volume in the last 24 hours reached 45 billion dollars. The market value of Bitcoin is recorded as 1.22 trillion dollars. Ethereum (ETH) price is trading at $3,033.71, down 3.44%. The trading volume in the last 24 hours was 22.78 billion dollars. Ethereum’s market value reached $364.29 billion. Other important altcoin prices are as follows:
- Binance Coin (BNB): $538.63, down 4.69%
- Solana (SOL): down 10.82% to $132.46
- XRP: $0.4848, down 3%
- Cardano (ADA): $0.4543, down 2.24%
- Dogecoin (DOGE): $0.1534, down 3.51%
- Shiba Inu (SHIB): $0.0000213, down 4.33%
Additionally, Solana-based meme coin Pepe Coin (PEPE) continues to lose value despite the overall downtrend. As of 09:00 on Tuesday, April 16, Pepe Coin price is trading at $0.000004837, down 7.49%. The trading volume in the last 24 hours was 895.34 million dollars. The market value of Pepe Coin is recorded as 2.03 billion dollars. EVM-compatible L1 project Core (CORE) became the top-gaining cryptocurrency this week, with a 62.29% increase.
Bitcoin halving is approaching
As Kriptokoin.com reported, Bitcoin’s halving event, which occurs every four years, will take place on April 20. In this event, the amount of Bitcoin produced per block will be halved. How the halving event will affect the Bitcoin price is eagerly awaited by investors. The cryptocurrency market is affected by macroeconomic factors such as inflation and interest rates, which have recently increased. This situation reduces investor risk appetite, causing declines in cryptocurrency prices. Important events such as Bitcoin halving are also expected to affect the market.
Meanwhile, risk assets including technology stocks and cryptocurrencies are bearish, with analysts predicting Bitcoin’s (BTC) bottom in November 2022 and the rally before the latest halving to record levels. Moreover, he claimed that the impact of Bitcoin ETFs has “dryed up.” Markus Thielen, founder of 10 Research, said:
Our growing concern is that risk assets (stocks and crypto) are on the verge of a significant price correction. The primary trigger is unexpected and persistent inflation. With the bond market now anticipating a cut and 10-year Treasury Yields to exceed 4.50%, we may be at a crucial turning point for risky assets. We sold all of our tech stocks last night (while the market was open) due to Nasdaq trading very weakly and reacting to high bond yields. We only have a few high-confidence cryptocurrencies. Overall we are bearish on risky assets (stocks + crypto). Flows into US-listed spot BTC ETFs have dried up.
BTC ETF inflows are falling
Additionally, Bitcoin ETFs made a strong recovery during Asian trading hours on Monday, April 15. However, later in the day, the decline in the US market poured cold water on the crypto market recovery as Bitcoin price rose over 4.5% and fell below $62,500 levels. Although Bitcoin sell-offs will become more pronounced as the Bitcoin halving date approaches, the long-term impact of the event is expected to strengthen the price of the leading crypto asset, according to the CEO of exchange Crypto.com.
The week started on a rather low note for spot Bitcoin ETFs in the US market. Total net inflow turned negative at around $37 million. BlackRock’s IBIT Bitcoin ETF recorded inflows of $73 million, but GBTC outflows remained at $110 million, according to data from Farside investors. Amid continuous outflows, Bitcoin’s GBTC holdings fell 50% due to high management fees. After two months of solid inflows since launch, Bitcoin ETF demand decreased in the last two weeks of April.
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