Quick Take
April has been a turbulent month for Bitcoin, with its price trading around $70,000 at the start of the month before encountering a series of challenges that brought it to local lows just below the $60,000 mark.
Despite nearly four days remaining in the month, Bitcoin is currently trading at around $64,000.
The month kicked off on a rough note, as the conclusion of the US tax season prompted a potential sell-off of Bitcoin. Economic headwinds compounded the situation, including a significant surge in the price of gold, higher-than-expected inflation, and rising yields, leading to a momentary pause in risk-on assets.
Geopolitical tensions in the Middle East also exacerbated the situation, resulting in negative funding rates in BTC for the first time since the end of 2022. These headlines continued to weigh on the flagship crypto’s price, contributing to its decline.
Furthermore, ETF inflows began to taper off, with BlackRock’s IBIT inflows ceasing for two consecutive days while GBTC outflows persisted. The anticipation surrounding the halving event, typically a bullish long-term factor for Bitcoin, added to the uncertainty in the short term, especially regarding transaction fees and miner activities.
Additionally, the US government’s sale of 1,999 BTC added to the bearish news while a significant volume of liquidations was observed in Bitcoin.
Despite these challenges, Bitcoin’s resilience shines through, as it’s only down approximately 11% for the month. Bitcoin had achieved seven consecutive months of gains, leaving observers to wonder if it could achieve an unprecedented eighth consecutive month of growth.
