Crypto Market Corrects Due to Bitcoin ETF Outflow Trend and Fed Decision

Liputan6.com, Jakarta – The crypto market returned to the bearish zone at the start of this week. Bitcoin prices were observed on Monday, April 29 2024, to fall by 2.20% to USD 62,575 or the equivalent of IDR 1.01 billion (assuming an exchange rate of IDR 16,238 per US dollar).

Tokocrypto trader, Fyqieh Fachrur explained, throughout this week the crypto and Bitcoin markets will face significant volatility due to the FOMC meeting which determines the status of US interest rates by the Fed.

“Overall Bitcoin has extended its losing streak throughout last week. “In the last week, the BTC-spot ETF market experienced net outflows for three consecutive weeks, despite the Bitcoin Halving on April 20,” said Fyqieh in an analysis at the start of the week quoted on Tuesday (30/4/2024).

Bitcoin ETF Outflows

According to Farside Investors, the total net outflow of the BTC ETF was USD 328.0 million or equivalent to IDR 5.3 trillion in the week ending April 26.

“With two trading days remaining for April, the BTC-spot ETF market had total April net outflows of USD 130.8 million entering Monday's session,” explained Fyqieh.

If demand conditions fail to improve, the spot BTC ETF market could experience net monthly outflows for the first time since its launch on January 11, 2024. Investor sensitivity to BTC ETF market flow trends could increase this week.

US Economic Data

As for other sentiments, the US labor market data and the Fed's FOMC are the focus points which are scheduled for May 1. Fed Chair Jerome Powell's press conference will allow markets to adjust their expectations for multiple Fed rate cuts in 2024.

According to the CME FedWatchTool, there is a 97.6% chance that the Fed will keep interest rates unchanged, and market experts anticipate a delay in further rate cuts.

Meanwhile, several other important economic events scheduled throughout this week, including the release of consumer confidence data and US trade deficit figures, will provide crypto market traders and investors with important clues regarding the condition of the US economy.