Bitcoin
Bitcoin’s Longest Loss Streak in 2024 Casts Cloud Over Crypto
(Bloomberg) — Bitcoin is falling as part of a $500 billion drop in digital assets, raising questions about whether the cryptocurrency recovery has peaked.
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The token is flirting with five consecutive days of declines, which would be the longest losing streak since October last year. The overall cryptocurrency market fell 17% to $2.4 trillion following Bitcoin’s mid-March record high of $73,798, according to data compiled by CoinGecko and Bloomberg News.
Weak inflows into US spot Bitcoin exchange-traded funds and the prospect of higher-for-longer interest rates from the Federal Reserve are together subduing digital assets. The debut of Hong Kong crypto ETFs last week failed to improve the mood.
The flood of money into US funds following its launch in January had already lifted Bitcoin to its all-time high. Global net inflows for the group now stand at US$11.8 billion, after an outflow of US$169 million so far this month.
Many speculators who were betting on continued strong ETF flows are now “being priced out of the market,” said Benjamin Celermajer, director at digital asset investment manager Magnet Capital. But he added that the bull market is not over yet and that Bitcoin will reach new highs by the end of 2024.
In the derivatives market, there are signs that investors expect fewer big swings in Bitcoin compared to the volatility that accompanied the launch of US ETFs.
The Bitcoin T3 Volatility Index – which uses option prices to give an idea of expected 30-day swings in the token – and the equivalent indicator for the second-ranked digital asset Ether are both at two-month lows.
Bitcoin was down about 1.4% at $60,730 at 7:05 a.m. in New York on Thursday, while Ether was little changed at around $3,000.
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