Bitcoin Investors Prepare for Post-ETF Craze: The cryptocurrency has declined by 13% since March,
a sharp contrast to the 67% and 57% increases in the previous two quarters.
According to CoinShares, investors pumped $2.6 billion into Bitcoin funds during the second quarter compared to about $13 billion in the first quarter.
Content
Questions About the Future
Market Expectations
Decline in Interest in Bitcoin
Questions About the Future
As the second quarter of the year ends, cryptocurrency investors are wondering what the next step
for Bitcoin will be after its decline from its all-time highs reached during the peak of the ETF investment craze.
The original cryptocurrency has declined by about 13% since March,
a sharp contrast to the 67% and 57% gains seen in the previous two quarters, respectively,
where Bitcoin hit a record high of $73,798 on March 14 and closed the second quarter at around $61,000.
Market Expectations
This decline has raised questions about whether the cracks in momentum-based
trading deals like Bitcoin indicate a decrease in investors’ risk appetite,
especially amid expectations of prolonged high interest rates overshadowing the financial markets.
Austin Reid, the Global Head of Revenue and Business at FalconX, said,
“Many people in the market have questions, most of which are centered around macroeconomic concerns.
Therefore, I think the cryptocurrency market reflects some short-term doubts, as seen in other asset classes.”
Decline in Interest in Bitcoin
The slowdown in demand for US ETFs allowed to hold Bitcoin may indicate a declining interest.
According to data compiled by CoinShares, investors pumped about $2.6 billion into Bitcoin funds during the second quarter,
compared to about $13 billion in the first three months of the year.
Market Reaction
Matthew O’Neill, Co-Head of Research at Financial Technology Partners,
reported that “the launch of ETFs was followed by a significant euphoria,
then a natural price correction occurred after the rise.”
He explained that ETFs received a flood of interest from professional investors
who wanted to invest in Bitcoin but were only looking to buy the cryptocurrency through institutional means.
For investors who have not yet bought into ETFs,
he said they might be waiting for an opportunity to enter during the next bullish momentum in Bitcoin’s price.
Bitcoin Investors Prepare for Post-ETF Craze