Posted by Xoken.org – Bitcoin recovered from its biggest sell-off in more than two months, causing the price of Bitcoin to fall to as low as US$56,576 (Rp. 907 million) as investors digested the prospect of Central Bank interest rates remaining high for longer, as well as a jumbo net sell. Bitcoin Spot ETFs.
Even though there was a bearish trend in the crypto asset market, including Bitcoin, it recovered and prices rose as reflected in the successful rebound reaching above US$64,000 (Rp. 1.02 billion). The overall total market capitalization of crypto assets has also rebounded to jump 3.46% and touch US$2.23 trillion.
Quoting Coinglass data, Bitcoin closed April by contracting 14.76% on a point-to-point basis, making it the deepest monthly decline since January 2023. In fact, in the previous month, the price of Bitcoin touched an all-time high, almost US$74,000.
Meanwhile, the digital asset with the largest and most popular market capitalization, Bitcoin, has strengthened 4.35% from May 1 to May 7, 2024 based on Ajaib Crypto data.
Financial Expert Analyst Ajaib Crypto Panji Yudha explained that in the trading period from April 29 to May 2 2024, Bitcoin Spot ETF trading experienced a Capital Outflow of US$ 811.3 million.
“On Wednesday (1/5/2024) US Bitcoin Spot ETF trading recorded a record Outflow of US$563.77 million. Even though there was an Inflow of US$378.3 million on Friday (3/5/2024). “Thus, the Net Outflow of ETF trading last week reached US$433 million,” citing research published, Tuesday (7/5/2024).
Meanwhile, May 1 was also the first day when an Outflow was recorded on the iShares Bitcoin Trust (IBIT) from BlackRock. Previously, IBIT recorded Net Inflow of funds for 70 consecutive days.
On the other hand, on Friday (3/5/2024), the Grayscale Bitcoin Trust (GBTC) Bitcoin ETF recorded an Inflow of US$63 million for the first time after recording a jumbo Outflow of US$17.64 billion since the 11 Bitcoin Spot ETFs were launched on 11 January 2024 at that time.
“In addition to (Starting) an Inflow of Bitcoin Spot ETFs, Bitcoin started climbing again above US$60,000 (Rp. 962 million) on Friday (3/4/2024) after a weaker-than-expected US jobs report in April raised hopes that the US Central Bank ( “The Federal Reserve/The Fed) can immediately start cutting interest rates,” said Panji.
When this writing was written, Bitcoin was parked at the level of US$64,215 and was moving in the green zone for a week, gaining 2.74% in 7 trading days. Bitcoin’s market capitalization also rose again to around US$1.26 trillion.
Technically, Panji analyzed, Bitcoin is testing the MA-20 dynamic support area and trendline resistance. If it manages to stay above US$62,800, it has the potential to strengthen to the dynamic resistance MA-50 around US$65,800.
Meanwhile, if you experience a rejection at resistance and fall below the resistance trendline, there is potential to fall to the dynamic support of the MA-100 at around US$60,800.
Crypto Asset Sentiment this Week
Friday’s United States Non-Farm Payrolls (NFP) employment data showed a gain of only 175,000 jobs in April, which was below market expectations of 238,000.
Following weaker-than-expected job growth and modest wage increases in April, market players and crypto asset investors are expecting a rate cut before the end of the year.
“Based on the CME FedWatch Tool, market players expect the Fed to cut interest rates by 0.25% or 25 basis points in September 2024 and continue in December 2024 with the same reduction,” explained Panji.
This week’s sentiment also came from hearings from several Federal Reserve officials after Friday’s employment report showed that job growth slowed last month, easing concerns that interest rates will remain high for the rest of the year.
New York Fed President John Williams, and Richmond Fed President Thomas Barkin will speak, followed by Minneapolis Fed President Neel Kashkari. Chicago Fed President Austan Goolsbee, as well as Fed Governor Michelle Bowman will attend this week.
Consumer Confidence Index data next Friday will also provide some new insights regarding inflation expectations and future global economic prospects. The weekly Initial Jobless Claim report which will be released on Thursday (9/5/2024) will also be a potential rokokbet sentiment.