Key Points
- Bitcoin seems to face its first monthly loss after seven months of consistent growth.
- Multiple factors are affecting Bitcoin’s bullish momentum, but market recovery is anticipated.
Bitcoin, the largest digital asset in terms of market capitalization, seems to be on track for its first monthly loss. This could potentially end a seven-month streak of closing each month with a higher value than it started.
In April, Bitcoin began with a price of around $70,000. However, as the month nears its end, it is hovering just above the $61,000 mark, indicating a monthly decline of over 12%.
Bitcoin’s Momentum Faces Challenges
A combination of several factors has dampened the bullish momentum that propelled Bitcoin at the start of the month. These include a slowdown in demand for spot exchange-traded funds, the prospect of higher-for-longer interest rates, and a broader risk-off sentiment pervading equity markets.
According to Aurelie Barthere, a Principle Research Analyst at Nansen, the recent downturn in the cryptocurrency market has resulted in a disproportionate number of negative returns relative to positive ones, affecting traders’ risk-on sentiments.
Market Recovery Anticipated
Despite the downturn, the analyst at Nansen anticipates a market recovery following a period of subdued activity. This recovery could potentially focus on major tokens.
“Our on-chain analysis reveals sustained growth in the crypto ecosystem, exemplified by the peak in cross-chain fees aligning with crypto price movements. Notably, Solana and Base exhibit promising gains in fee market share,” she noted.
Over the past 24 hours, the price of Bitcoin has decreased by around 1.45%, trading at $61,689. The GM 30 Index, representing a selection of the top 30 cryptocurrencies, has decreased by 2.6% to 126.45 during the same period.
