Bitcoin Faces Its Longest Losing Streak Since 2024, Casting a Shadow Over the Cryptocurrency Market
Bitcoin’s price has slightly declined, leading to a significant contraction of the digital asset market’s total value, which has shrunk by $500 billion recently. This development raises questions about whether the cryptocurrency rebound has reached its peak.
Bitcoin is heading towards its fifth consecutive day of decline, marking its longest losing streak since October last year. According to data compiled by CoinGecko and Bloomberg, the overall cryptocurrency market cap has fallen by 17% to $2.4 trillion since Bitcoin reached a record high of $73,798 in mid-March.
The lack of sustained inflows into U.S. spot Bitcoin exchange-traded funds (ETFs), coupled with the prospect of the Federal Reserve maintaining high interest rates for an extended period, has dampened the digital asset market. Additionally, the first batch of cryptocurrency ETFs launched in Hong Kong last week did not manage to lift market sentiment.
After the debut of the U.S. Bitcoin ETF in January, it attracted significant capital inflows, driving Bitcoin’s price to all-time highs. However, with a net outflow of $169 million so far this month, the total net inflow now stands at $11.8 billion.
Benjamin Celermajer, Director at digital asset investment management firm Magnet Capital, noted that many speculators betting on continued strong inflows into ETFs are being ‘washed out’ of the market. Nonetheless, he added, the bull market is not over, and Bitcoin is expected to reach new highs within the year.
