Bitcoin’s price has seen a turbulent month of April, starting at $70,000 and dropping to local lows just below $60,000. As the month comes to a close, Bitcoin is currently trading at around $64,000.
The rough start to the month was attributed to the conclusion of the US tax season, which potentially sparked a sell-off of Bitcoin. Economic factors such as a surge in the price of gold, higher-than-expected inflation, and rising yields also contributed to a pause in risk-on assets. Geopolitical tensions in the Middle East further weighed on Bitcoin, leading to negative funding rates in BTC for the first time since 2022.
ETF inflows began to slow down with BlackRock’s IBIT inflows stopping for two consecutive days and persistent outflows from GBTC. The anticipation of the halving event added uncertainty in the short term, especially regarding transaction fees and miner activities. The US government’s sale of 1,999 BTC and a significant volume of liquidations in Bitcoin added to the bearish news.
Despite these challenges, Bitcoin has shown resilience, only down approximately 11% for the month. With seven consecutive months of gains prior to April, observers are curious to see if Bitcoin can achieve an unprecedented eighth consecutive month of growth.
