According to analysts, it is the world’s largest cryptocurrency which is Bitcoin, New entrants into the digital asset space through US ETFs are increasingly aligning with the traditional perspectives of investors.
Bitcoin on Friday surged after a report showed a smaller-than-expected increase in US employment. This situation revived interest rate cut expectations and increased the attractiveness of speculative assets. This rally managed to offset most of the losses incurred earlier in the week amid growing concerns that Fed officials are adopting a more hawkish tone and demand for ETFs is waning.
FRNT Financial CEO Stéphane Ouellette commented on the week’s events:
“What this week has taught us is that Bitcoin is at an all-time high and the new development of Bitcoin ETFs is opening up Wall Street participation in the Bitcoin market in a way we have never seen before. Previously, there was no clear correlation with other asset classes. “But this week, especially during the sell-off ahead of the Fed on Tuesday night, it was very clear that Bitcoin was trading in line with other risk assets.”
On Friday, Bitcoin rose nearly 7% to $63,257, contributing to price gains of smaller cryptocurrencies like Ether, Solana, and even memecoins like Dogecoin. On May 1, Bitcoin fell to $56,527, its lowest level in nearly two months.
On Wednesday, investors withdrew a net $564 million from U.S. Bitcoin Spot ETFs, marking the largest decline since these products launched in January. The prospect of prolonged high interest rates has also put pressure on other markets, including stocks.
However, yesterday, for the first time since its launch, Grayscale’s GBTC product experienced a net inflow of $63 million.
Bitcoin’s decline from its record high of almost $74,000 in March suggests investors are feeling some concern. Youwei Yang, Chief Economist and Vice President of crypto miner BIT Mining Ltd, suggested that traders “may see some risks in the global macro environment that the Fed or general investors have not yet seen.”
*This is not investment advice.
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Source: https://www.bitcoinsistemi.com/bitcoin-btc-fiyati-neden-yukseliyor-iste-sebep-ve-unlu-ceonun-yorumu/
