In a recent slump, Bitcoin’s price (BTC) dipped by nearly 4%, trading below $62,500 during the early trading hours of the Asia business day. Concurrently, Ether (ETH) seemed to fare better, holding ground above $3,000.
A leading digital assets index, the CoinDesk 20 measures the world’s largest and most liquid cryptocurrencies. It saw a similar decline of 4%, trading at 2,139.
Reflecting these changes, CoinDesk’s Bitcoin Trend Indicator (BTI) has switched from bullish to neutral, signaling a decrease in rising momentum. The BTI is an algorithm-aided daily signal that reveals the direction and strength of Bitcoin’s price trends.
This new neutral trend comes after a steady upward trend since October 2023, sparked by reports of potential initiatives by fund managers to collaborate with the Securities and Exchange Commission (SEC) on launching spot Bitcoin exchange-traded funds (ETF).
Ether’s trend indicator similarly switched to a neutral position. Market data shows no change in flows from other Bitcoin ETFs on April 15, barring GBTC which experienced an outflow hitting a total of negative $82.5 million for the week.
Despite this decline, “Trading volumes stayed strong, with BTC Spot ETFs recording a weekly trading volume of about $16.2 billion,” noted Matteo Greco, a research analyst at Fineqia. However, the report warns against premature excitement over a rebound in the secondary watch market, citing high inventory levels as a potential barrier.
These fluctuations serve as a reminder that the crypto market’s high volatility continues to be its defining characteristic.
Vocabulary List:
- Slump (noun): A sudden severe or prolonged fall in the pricevalueor amount of something.
- Dipped (verb): To go downwards or reduce in quantity or quality.
- Cryptocurrencies (noun): Digital or virtual currencies that use cryptography for security.
- Indicator (noun): Something that shows the condition or existence of something else.
- Volume (noun): The amount of space that is contained within a 3D shape or the loudness of sound.
- Fluctuations (noun): Irregular changesespecially in price.
