Bitcoin Faces Pressure
Bitcoin has faced a number of negative factors that have contributed to the price drop over the past 24 hours.
Although Bitcoin has fallen a paltry 2% over the past 24 hours, the major cryptocurrency is under pressure from several negative factors, including regulatory hostility, technicals, and outflows from ETFs.
Bitcoin ETF outflows have continued to increase over the past three days. This Thursday alone, net outflows totaled $217 million. Franklin Templeton was the only fund to record an inflow of funds.
Rough day across the board for the Cointucky derby and the #Bitcoin ETFs yesterday. 5 ETFs saw outflows for a total of -$217 million. Franklin was only ETF with an inflow at $1.9 million. pic.twitter.com/9NF9iXi2GN
— James Seyffart (@JSeyff) April 26, 2024
Meanwhile, DTCC is striking a blow against Bitcoin ETFs by taking a tough stance on crypto funds. The Depository Trust Company system, is not only part of the larger Depository Trust & Clearing Corporation (DTCC) organization, but also a key component of the U.S. financial infrastructure, acting as a central securities' depository. Beginning April 30, 2024, it will implement changes to the collateral value of individual securities.
DTCC will not assign a collateral value to ETFs whose underlying assets are Bitcoin or other cryptocurrencies. Consequently, these securities will be cut by 100%. However, experts have already stated that this will only apply to Line of Credit (LOC) intercompany settlements.
This week, U.S. Senators Elizabeth Warren and Bill Cassidy sent a letter to the U.S. Department of Justice and the Department of Homeland Security requesting information on measures being taken to address the anonymity of cryptocurrency payments for the sale of child abuse materials. They emphasized the need to combat such payments.
On Friday, new inflation data was released, despite the rising figures, the Bitcoin community reacted positively and the price of the asset briefly rose. However, the data has become the subject of broader concerns about Fed policy tightening. The community is not convinced that the Fed will cut interest rates in the near term.
Analysts claim Bitcoin has entered the "danger zone" after the halving event. They described this phenomenon as the period during which bitcoin has historically experienced a price correction after a halving event. Rekt Capital argues that Bitcoin's price could fall even further during these two weeks.
#BTC
— Rekt Capital (@rektcapital) April 26, 2024
The Bitcoin Post-Halving "Danger Zone" (purple) is where historical Post-Halving Retraces have continued
In 2016, Bitcoin experienced additional downside in the following three weeks after the Halving
This downside saw price drop into the Range Low and produce an -11%… pic.twitter.com/WFbb2N8Anh
Another analyst, Ali Martinez, provided a disappointing technical analysis. He noticed two sell signals on the 12-hour chart of Bitcoin: a death cross between the 50- and 100-day SMA and a red 9 candlestick from the TD Sequential. Thus, he believes that the price of the asset could fall to a two-month low of $59,000.
