Bitcoin has touched a one-month low as outflows from digital-asset investment products, and the potential for prolonged high US borrowing costs weigh heavily on the cryptocurrency market. BTC fell as much as 2.1% today (June 18th, 2024), reaching levels last seen in mid-May before stabilizing.
Shocking! Significant Outflows from Digital-Asset Products
According to data from CoinShares International, approximately $600 million was withdrawn from digital-asset products last week, marking the highest outflow since March. Persistent inflation concerns have led traders to reduce their expectations for Federal Reserve interest-rate cuts this year. This poses a significant challenge for speculative investments like cryptocurrencies.
Comparative Performance Analysis: Stocks and Bonds Vs. Bitcoin
In the current quarter, stocks and bonds have outperformed Bitcoin, a stark contrast to the previous quarter where digital assets delivered superior returns compared to traditional markets. This shift underscores the volatility and speculative nature of the cryptocurrency market.
Bitcoin Market Analysis: BTC 2024
Bitcoin’s current price is $65,634, a decline from early June when it crossed $71,100. At the beginning of the year, Bitcoin was around $44,00, experiencing an uptrend in early February, likely driven by demand for US exchange-traded funds. By mid-March Bitcoin peaked at $73,798, but the rally has since cooled alongside a reduction in ETF flows.
Bitcoin Analysis using Technical Indicators
The 30-period Simple Moving Average of Bitcoin is $68,457, and the 30-period Exponential Moving Average is $67,416. Both these values are far higher than the BTC’s current value of $65,634.
Bitcoin ETF Market: A Simple Overview
The Bitcoin ETF total market cap is $82.04 billion, with Bitcoin Futures at $2.31 billion and Bitcoin Spot ETF at $79.74 billion. In the past 24 hours, Bitcoin ETFs recorded a trading volume of $1.38 billion, with Bitcoin Futures ETFs at $160.31 million and Bitcoin Spot ETFs at $1.22 billion.
Bitcoin’s recent dip highlights the ongoing challenges in the cryptocurrency market, influenced by macroeconomic factors and investor sentiment. As crypto traders navigate these fluctuations, the future of Bitcoin remains a focal point of interest and speculation.