Bitcoin sets a new record for the longest consecutive decline this year. Has the cryptocurrency bull market come to an end?
Bitcoin continues to decline, with the market capitalization of digital assets falling by $500 billion, causing concerns about the bull market for cryptocurrencies. Bitcoin has been falling for five consecutive days, marking the longest decline since October last year. Although Bitcoin ETFs have been approved for listing in Hong Kong, investors expect the volatility of Bitcoin to decrease. The current price of Bitcoin is $61,541.8, and the price of Ethereum is $2,997.75
According to the Zhitong Finance and Economics APP, as Bitcoin continues to decline, the overall market value of digital assets has dropped by $500 billion, leading people to question whether the rebound of cryptocurrencies has peaked.
Bitcoin has been falling for five consecutive days, marking the longest continuous decline since October last year. According to CoinGecko and compiled data, Bitcoin hit a historical high of $73,798 in mid-March, but the entire cryptocurrency market has since plummeted by 17% to $2.4 trillion.
The inflow of funds into the US Bitcoin ETF has decreased, coupled with the prospect of the Federal Reserve's "higher-for-longer" policy, which has collectively pushed down the prices of digital assets. The approval of Bitcoin ETF listing in Hong Kong last week did not bring optimism to the market either.
After the launch of Bitcoin ETFs in the US in January, a large amount of cash flowed into such funds, briefly pushing Bitcoin to historic highs. Although the total net inflow into these funds has been $11.8 billion so far, $169 million has flowed out this month.
Benjamin Celermajer, head of digital asset investment management company Magnet Capital, stated that many speculators betting on the continued strong flow of ETFs are now "squeezed out of the market." However, he added that the bull market is not over yet, and Bitcoin will hit a new high by the end of 2024.
In the derivatives market, there are signs that investors expect a significant reduction in Bitcoin's volatility compared to the fluctuations seen after the launch of US ETFs.
The T3 Bitcoin Volatility Index (which uses option prices to predict the expected volatility of Bitcoin in the next 30 days) and the corresponding index of Ethereum, the second-largest digital asset by market capitalization, are both at around two-month lows.
As of the time of writing, the price of Bitcoin has fallen by 1.39% to $61,541.8, while Ethereum has dropped by 0.46% to $2,997.75