Bitcoin ETF Slowdown Is Not the Beginning of a Crypto Asset Nightmare

After months of continuous inflows, the surge in cash flowing into Bitcoin exchange-traded funds (ETFs) has stalled.

Reporting from Yahoo Finance, Tuesday (30/4/2024), according to data from the London-based investment company Farside Investors, investors withdrew almost USD 218 million or the equivalent of IDR 3.5 trillion (assuming an exchange rate of IDR 16,238 per US dollar) from the Bitcoin Spot ETF product during the end of week through Monday, April 29, 2024.

The significant cash outflow coincided with an important federal economic report that showed the American economy experienced slower than expected growth in the first quarter.

As a result, it is unlikely that the Federal Reserve will lower interest rates any time soon, following recent rate increases to combat inflation.

High interest rates do not bode well for risky assets like Bitcoin, as investors prefer to place their funds in investment opportunities with high and stable returns.