Bitcoin Recuperates On Risk Off Sentiment; Fed Meet Looms
By Laxmikant Khanvilkar
Virtual digital assets (VDA) are stuck in consolidation phase as they continue to face headwinds and lack strong investment narrative to provide thrust.
Bitcoin (BTC), the largest cryptocurrency by market capitalisation, did managed to recover while reclaiming $64,000 mark but holding on to current level seems tough task. Although it recently traded at $64,420 up 2%, the gain was prompted by optimism ahead of upcoming Hong Kong crypto spot exchange-traded fund (ETF) debut. Apparently, an executive of one of the issuers reportedly expects the first-day issuance of the Hong Kong offerings to exceed the U.S. debut in January.
In the recent times, crypto’s are trying to muster support from strong earnings performance of technology stocks. The ramped up hopes of perky demand for artificial intelligence based technology, are expected to keep supporting tech earnings in the coming quarter. However, in the immediate term market focus remains on the Fed meet later this week and jobs data.
Analysts see the elusive U.S. interest rate and sticky inflation as a perfect combination to propel investors buying gold and Bitcoin.
But, the latest data of spot Bitcoin ETFs tells a different story. Throughout the week ending on April 26, 2024, Bitcoin Spot ETFs in the U.S. experienced notable fluctuations in net flows.
Moreover, these ETFs registered a massive weekly net outflow of $328 million as institutional investors cut down on their BTC positions in a bit to avoid a potential post-halving crash.
Most altcoin majors also gave up their weekend gains, with ether (ETH), solana (SOL), dogecoin (DOGE) declining 4%-6%.
Ethereum (Ether), the second largest cryptocurrency by market capitalisation, has held on to $3,200 level and was recently changing hands at $3,231 losing 1%.
The global crypto market cap decreased 0.25% to $2.35 trillion in the last 24 hours. On the other hand, the total crypto market volume rose 36% to $69 billion. Total volume in DeFi is currently $6 billion, and all stablecoins are $64 billion, representing 9% and 92%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 53.45%, up 0.6% over the day.
The IC15 index, the barometer of the top fifteen tokens, rose 0.30% to 80,407.
Meanwhile, the Bitcoin maximalist Michael Saylor headed MicroStrategy has reported a net operating loss of $53.1 million, or $3.09 per share, in the first quarter after taking a digital asset impairment charge of $191.6 million. The bitcoin development company announced addition of 122 tokens in April, bringing total holdings to 214,400 worth $13.5 billion at current price.
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