Due to investors' interest in American Bitcoin ETFCrashofthetitansps3Bitcoin suffered its biggest monthly decline since the collapse of Sam Bankman-Fried 's FTX empire. Bitcoin fell nearly 16% in April, only slightly less than the decline in November 2022. The frenzy over the US ETF pushed Bitcoin to a record high of nearly $74000 in March, but inflows into Bitcoin products have fallen sharply as expectations of Fed interest rate cuts have dwindled, hitting demand for risky investments.

Bitcoin recorded its worst monthly performance since the FTX crash

On Tuesday, the price of Bitcoin plunged nearly 5% to about $60, 000. Tokens such as Ethernet Fang and Solana fell even more. Stocks related to cryptocurrencies also fell, with MicroStrategy (MSTR.US) down 18 per cent, Marathon Digital (MARA.US) down 11 per cent, Platforms (RIOT.US) down nearly 9 per cent, CleanSpark (CLSK.US) down nearly 10 per cent.

As of April 29, 11 U.S. spot bitcoin ETF had a net outflow of $182 million for the month. These funds had a net inflow of $4.6 billion in March. The funds were approved by the Securities and Exchange Commission (SEC) in January.

Monthly outflow of Bitcoin ETF in the United States for the first time

Seth Ginns, managing partner of Coinfund and head of liquid investment, said on TuesdayCrashofthetitansps3"ETF has created a new investment channel that has been widely welcomed, far more than anyone expected." This "led to a rapid rise in Bitcoin, far more than expected."

A quadrennial halving of bitcoin is highly expected, reducing the supply of new bitcoins on the market and driving prices historically, but the impact has been negligible since the halving of bitcoin on April 19.

Market watchers have been looking for new tailwinds in Asia and are keeping a close eye on Hong Kong-listed Bitcoin and spot ETF in Ethernet Fong, but Tuesday's ETF listing failed to inspire investor confidence. The total trading volume of the six new ETF was $11 million on the first trading day, according to data compiled by Bloomberg. This is a far cry from the total transaction volume of $4.6 billion when 10 US spot bitcoin products were first unveiled.

"before the launch of Hong Kong ETF, the market established some irrational expectations," said analysts at K33 Research.