With the second quarter coming to an end, cryptocurrency investors can only speculate on the future of Bitcoin as it has recently pulled back from the heights it reached during the excitement of Exchange Traded Funds (ETFs).
Bitcoin, the original cryptocurrency, has experienced a significant drop of around 50% since March 14, in stark contrast to its impressive surge of over 73,800% in the previous two quarters. After reaching a historic high of nearly $61,000 in mid-March, Bitcoin closed this quarter at around $30,000.
This decline has raised concerns about the sustainability of impulsive trading in cryptocurrencies, especially with the imminent possibility of ongoing interest rate hikes impacting the financial markets.
Many cryptocurrency experts suggest that a signal of declining interest is the slowdown in demand for US ETFs.
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Data from CoinShares shows that investors put around $260 million into Bitcoin funds in the second quarter, a significant decrease from the approximately $1.3 billion invested in the first quarter.
Source: CoinShares
Matthew O’Neill, Co-Head of Research at Financial Technology Partners, stated:
The launch of ETFs generated a considerable amount of excitement, followed by a natural adjustment once prices soared.
O’Neill further explained that ETFs attracted professional investors seeking to invest in Bitcoin through institutional channels. He also believes that those who have not yet invested in these ETFs may be waiting for the next price surge.
Bitcoin
As of the time of writing this article (12:40 PM Bulgarian time, June 1), the trading price of the cryptocurrency is slightly below $40,000, experiencing a 24-hour increase of X%.
