#etf #btc #Bitcoin⠀
⚠️ BTC in sorrow: Neither Halving nor Hong Kong helped
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Bitcoin has lost 14%, its worst month since the FTX crash: the euphoria around US exchange-traded funds tied to the famous token proved ineffective.
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In March, the BTC-ETF hype drove the price to nearly $74,000. However, hopes of a Fed interest rate cut are waning, and demand for risky investments is falling. As of April 29, there have been net outflows of $182-185 million from 11 U.S. spot ETFs, and the process is accelerating.
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Bitcoin's long-awaited halving took place on April 19. Shares of mining companies went down faster than
bitcoin itself: Marathon Digital Holdings Inc. fell by 7.5%, Riot Platforms Inc. – by 5.6%, and Cleanspark Inc. – down 7.7%, Even MicroStrategy Inc. lost 15% – the software maker, which made
bitcoin buying part of its corporate strategy, reported its first quarterly loss of $53 million.
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Market participants expected positive momentum from the launch of the BTC/ETH ETF in Hong Kong and were actively buying – bullish sentiment was overflowing. To understand why this event should have triggered a market PUMP, we need to consider the following factors.
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• The size of Hong Kong's roughly $4 trillion stock market is only 1/12th of the U.S. stock market, and the size of Hong Kong ETFs is too small for global momentum.
• ETFs are not money, just a tool to raise money. And if institutional investors start selling risky assets, in a panic sale, the possibility of selling cryptocurrency through ETFs could quickly crash the market.
• A new scandal is brewing: last week, Consensys Inc., a cryptocurrency software developer, filed a lawsuit challenging the SEC's right to regulate the Ethereum blockchain and it's going to be a very long battle.
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Today, the Fed and Powell personally can still help crypto. But will they do so?
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Profits to y’all!