Yahya 
In one week, it became evident that ETFs significantly outflowed Bitcoin, including the top ETF that outflowed $198 million. Instantly, a rain of selling pressure hit, followed by the marketwide selloff, causing bitcoin prices to plummet to around the $60,000 mark. Experts predict a decline in bitcoin purchases to $55,000 as a result of the ongoing volatility in the cryptocurrency market.
Outflow Surge Precedes FOMC Meeting
The crypto market outflow surged the day before the Federal Open Market Committee (FOMC) meeting, which all participants are looking forward to. The meeting has an agenda of suggesting a possible increase in interest rates, making the investment yield less likely to be profitable. “Since the beginning of the week, outflows have been occurring for the fifth consecutive day.” According to analysts’ statements, the situation in terms of crypto money investment funds has reached a critical point,” said an analyst expressing his concern.
Grayscale Bitcoin Trust (GBTC), which dominates the Bitcoin ETF industry with a single-day change, had a $93.23 million outflow. What Farside Investors found out was that the pooled outflows were residents of a total historical net outflow of $17.3B. Second, Bitcoin spot ETFs’ total net asset values (NAVs) had dropped to less than $50 billion, ultimately reaching $49.413 billion.
Challenges for U.S. Bitcoin ETFs
April was hard for US Bitcoin ETFs, and it turned out to be a month with a rocking start. April saw dominating inflows during the first quarter of trading and a cumulative loss of $182 million for all nine US ETFs that comprised the Bitcoin spot market. There are several factors contributing to the discontent with fiat money, including existing economic and political probabilities.
However, one should also keep in mind the ongoing restrictions imposed by the pandemic on travel and daily life, which may alter the course of the recovery process.
Although sadness has prevailed in the market since the April 30th debut of Bitcoin and Ethereum ETFs in Hong Kong, there is still high hope that these ETFs will have a positive impact on the market. The launch day saw the trading of $12 million, surpassing $10 million and marking a significant milestone. Nevertheless, the U.S. market is five times larger, implying that the per capita success rate on day 1 for Hong Kong was higher than the U.S. However, the equity prices of ETFs and IPOs went up. Furthermore, the HK cryptocurrency’s launch price increased.
Price Correction and Future Trajectory
Since the wider market has become physically depreciated, BTC prices are now expected to fall below the $60,000 level. However, experts anticipate the trend to continue, and as they predict Bitcoin to crash from the highs of $63,000 to lows of $55,000, that could show the world that Bitcoin is not as invincible as its supporters argue. These two factors will primarily determine investor sentiments and the trajectory of Bitcoin’s price in the coming days as we approach the FOMC meeting and current market conditions.