Bitcoin Bounces Back in Asian Trading Hours but Slumps in US Market
The cryptocurrency market experienced a rollercoaster ride on Monday, April 15, with Bitcoin (BTC) and other digital assets initially bouncing back in the Asian trading hours following the launch of Hong Kong spot Bitcoin ETFs. However, the optimism was short-lived as a slump in the US market later in the day caused the Bitcoin price to plummet over 4.5% and slip below $62,500 levels.
The Dow Jones Industrial Average also faced a tough day, ending in negative territory for the sixth consecutive session with a 250-point drop to 37,735 levels. U.S. stocks continued their decline as Treasury yields surged in response to a strong consumer spending report, with the Nasdaq Composite dropping 1.8%, the S&P 500 retreating 1.2%, and the Dow Jones Industrial Average experiencing a 0.7% decline.
The increase in Treasury yields was fueled by a consumer spending report that exceeded expectations, pushing yields to year-to-date highs. The 10-year yield surpassed 4.6%, reaching levels not seen since November. This led to strong selling pressure on BTC and other cryptocurrencies, with some of the top ten altcoins facing 5-10% declines.
Crypto.com exchange CEO Kris Marszalek noted that as the Bitcoin halving date approaches, there may be increased selling pressure due to buy-the-rumor, sell-the-news trading. However, he remains optimistic about the long-term impact of the event on Bitcoin’s price.
In the US market, spot Bitcoin ETFs saw net outflows of around $37 million, with BlackRock’s IBIT Bitcoin ETF recording $73 million in inflows while GBTC experienced $110 million in outflows. The GBTC holdings of Bitcoin have dropped by 50% amid its high management fee.
Despite the recent outflows, the demand for Bitcoin ETFs has softened in April after a strong two months since launch. Critics like Peter Schiff have taken the opportunity to compare Bitcoin’s performance against gold in light of the recent market fluctuations.
