Bitcoin Faces First Monthly Loss Since August
Bitcoin appears to be on track to record its first monthly loss in several months, potentially breaking a streak of seven consecutive months where it ended each month at a higher value than it began. This trend has been ongoing since August last year.
April Price Performance
- Bitcoin started April with a price around $70,000.
- As the month nears its end, Bitcoin is currently trading just above $61,000.
- This indicates a monthly decline of over 12% for the leading digital asset.
Monthly Chart Analysis
- According to Coingecko data, April would mark Bitcoin’s first monthly loss since August 2023.
- April’s decline represents the largest monthly drop since June 2022 when Bitcoin closed lower at $21,000.
Challenges to Bitcoin’s Bullish Momentum
A combination of various factors has been impacting the bullish momentum Bitcoin experienced at the start of the month. These include:
- Slowdown in demand for spot exchange-traded funds.
- Potential for higher interest rates in the future.
- Broader risk-off sentiment in equity markets.
Market Sentiment
Research Analyst Aurelie Barthere from Nansen Principle suggests that the recent downturn in the cryptocurrency market has skewed the return distribution, leading to negative risk-on sentiments among traders.
Potential for Recovery
Despite the current market conditions, Barthere anticipates a potential market recovery after a period of subdued activity, with a possible focus on major tokens.
Bitcoin’s price has decreased by approximately 1.45% in the last 24 hours, currently trading at $61,689 at 6:15 a.m. ET based on The Block’s Price Page. The GM 30 Index, which tracks the top 30 cryptocurrencies, has also fallen by 2.6% to 126.45 in the past day.
Hot Take: Future Outlook
As Bitcoin faces its first potential monthly loss in several months, the cryptocurrency market continues to grapple with various challenges affecting its bullish momentum. Despite the current downturn, there is still hope for a market recovery in the near future. Traders and investors await further developments to gauge the direction of Bitcoin and other major tokens in the coming weeks.
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