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Bitcoin’s longest losing streak in 2024 casts a cloud over crypto
(Bloomberg) — Bitcoin is falling amid a $500 billion decline in digital assets, stoking questions about whether the crypto rebound has peaked.
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The token is flirting with five straight days of decline, which would mark the longest losing streak since October of last year. The overall crypto market fell 17% to $2.4 trillion following Bitcoin’s record high of $73,798 in mid-March, according to data compiled by CoinGecko and Bloomberg News.
Rampant inflows into U.S. spot exchange-traded funds and the prospect of higher and longer interest rates from the Federal Reserve are weakening digital assets. Last week’s debut of crypto ETFs in Hong Kong failed to improve the mood.
The influx of liquidity into American funds after their launch in January had already propelled Bitcoin to its all-time high. Overall net inflows for the group now stand at $11.8 billion, following an outflow of $169 million so far this month.
Many speculators who were betting on continued strong ETF flows are now “priced out of the market,” said Benjamin Celermajer, director at digital assets investment manager Magnet Capital. But he added that the bull market is not over and Bitcoin will reach new highs by the end of 2024.
In the derivatives market, there are signs that investors are expecting fewer big swings in Bitcoin compared to the volatility that has overshadowed the rollout of U.S. ETFs.
The T3 Bitcoin Volatility Index – which uses options prices to give a sense of the token’s expected 30-day swings – and the equivalent gauge for second-ranked digital asset Ether are both at around two-month lows .
Bitcoin fell about 1.4% to $60,730 as of 7:05 a.m. Thursday in New York, while Ether was little changed at around $3,000.
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