Bitcoin Faces First Monthly Loss Since August, Snapping Upward Trend

Bitcoin is facing its first potential monthly loss, marking an end to a seven-month streak of positive monthly closes. From an initial value of around $70,000 in April, Bitcoin has declined to around $61,000 as the month ends, indicating a monthly decline of over 12%. This represents Bitcoin's first monthly loss since August 2023 and its largest since June 2022.

Bitcoin on Cusp of First Monthly Loss, Snapping Seven-Month Upward Trend

After a remarkable seven-month period of consistent monthly gains, Bitcoin (BTC) is poised to experience its first monthly decline, potentially ending its extended period of positive performance. Since August 2022, Bitcoin has consistently closed each month at a higher value than it started.

As April draws to a close, Bitcoin has retreated from its early month value of approximately $70,000, currently hovering just above $61,000. This decline represents a monthly loss of over 12%. Data from Coingecko reveals that Bitcoin's monthly chart candles for April indicate the first monthly loss since August 2023. Moreover, the current downturn marks the most significant monthly decline since June 2022, when Bitcoin opened the month at around $31,000 but closed significantly lower at $21,000.

Factors Contributing to Bitcoin's Momentum Reversal

The bullish momentum that had propelled Bitcoin earlier in the month has encountered headwinds from a combination of factors. These include a slowdown in demand for spot exchange-traded funds (ETFs), the anticipation of prolonged higher interest rates, and a broader risk-averse sentiment prevailing in equity markets.

Aurelie Barthere, a Research Analyst at Nansen Precept, notes that the recent downturn in the cryptocurrency market has resulted in a disproportionate number of negative returns compared to positive ones, which has impacted traders' risk appetite. "Our analysis suggests that the latest crypto sell-off has dampened risk-on sentiments among traders, leading to a pronounced negative skew in return distribution," Barthere stated in an email to The Block.

Market Recovery Potential

Despite the recent decline, Barthere anticipates a market recovery following a period of subdued activity, potentially centered around major tokens.

As of 6:15 a.m. ET, Bitcoin had decreased by around 1.45% over the previous 24 hours, trading at $61,689, according to The Block's Price Page. The GM 30 Index, representing the top 30 cryptocurrencies, has experienced a 2.6% decline to 126.45 over the same period.

Disclaimer

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