With the second quarter coming to an end, cryptocurrency investors can only speculate on the future of Bitcoin, as it has recently retreated from the highs reached during the peak excitement of the Exchange-Traded Fund (ETF) period.
Bitcoin, the original cryptocurrency, has experienced a decline of around 50% since March 14, contrasting sharply with the 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 $2,000.
This decline has raised concerns about the sustainability of impulsive trading in cryptocurrencies, especially with the imminent possibility of continued interest rate hikes affecting the financial markets.
Many cryptocurrency experts have indicated that a signal of waning interest is the slowdown in demand for US ETFs.
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Bitcoin miners begin to shift towards other cryptocurrencies
Data from CoinShares shows that in the second quarter, investors poured approximately $260 million into Bitcoin funds, a significant decrease from the $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 created a significant amount of excitement, followed by a natural adjustment after the price increase.
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.
At the time of writing this article (12:40 PM Bulgarian time, January 12), the trading price of the cryptocurrency is slightly below $22,000, marking a 24-hour increase of 63%.
