In April, Bitcoin fell in price by 14.7%, although it had been steadily rising in price for the previous seven months, and in March it updated its historical maximum, showing a quote of $73.5 thousand. Already on May 1, by noon Moscow time, its quote was $57.2 thousand, and the minimum for today at the time of publication of this material was $56,552. Bitcoin has not fallen this low since the end of February. Following this, the second largest cryptocurrency by capitalization, Ethereum, as well as Solana, Dogecoin and other cryptocurrencies, fell in price.
Analysts offer several explanations for Bitcoin’s fall. The day before, the verdict was announced for the former head of the Binance crypto exchange Changpeng Zhao – he faces four months in prison. After this, Bitcoin dropped below $60 thousand.
Crypto market participants are also awaiting the upcoming US Federal Reserve interest rate decision. Markets have been losing stability recently amid investor concerns regarding the timing of a return to low rates. Bitcoin trading resembles traditional risk assets—proponents of the cryptocurrency see it as a hedge once morest inflation, but the track record of digital assets seems too mixed. Having fallen below $60 thousand, Bitcoin may once more return to the range of $50–$52 thousand, analysts say.
The declining popularity of Bitcoin ETFs adds fuel to the fire. Earlier this week, one of them was launched in Hong Kong, but the reaction to the start of trading was described by investors as “poor”: on the first day, the turnover of the ETF was in the millions of dollars.
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2024-05-01 22:58:39