Bitcoin's tumultuous journey from April to May sees it plummeting close to $57,000, marking its entry into a bear market following one of its worst months in nearly eighteen months.
April Wipeout Extends
The decline, with Bitcoin's price hovering at $57,075 early Wednesday, extends the April wipeout, coinciding with the closely monitored "halving" event and preceding Wednesday's Federal Reserve decision on interest rates. Despite being up approximately 30% for the year, Bitcoin now languishes more than 20% below its record high of $73,803 recorded in March.
Halving Event Uncertainty
Contrary to previous trends, Bitcoin's halving events, where the reward for miners halves, haven't sparked significant rallies this time around, analysts cautioned.
Disappointing ETF Debuts
The selloff persists as Hong Kong's Bitcoin and Ether ETFs fail to impress on their debut. The six newly listed crypto-related ETFs on the Hong Kong exchange fall short of expected initial volumes, with Bitcoin ETFs achieving $8.5 million and Ether ETFs securing $2.5 million, far from the anticipated $100 million.
Struggles in the U.S. Market
Bitcoin ETFs face challenges in the U.S. as well, with a total net inflow of $11 billion, significantly impacted by Grayscale's GBTC experiencing outflows exceeding $17 billion since April 11. Fidelity's FBTC also sees continuous outflows totaling $31 million over the past three days.
The recent price plunge follows a period of stability post-halving. However, investor apprehensions rise amidst the Federal Reserve's indication of no imminent interest rate cuts and growing concerns of stagflation.