CryptoQuant: Bitcoin Traders Pause Leveraged Bets Amid Market Uncertainty

Bitcoin’s Funding Rate Plummets to Record Low, Signaling Potential Market Shift

According to CryptoQuant’s data, the perpetual futures market is experiencing a concerning trend – traders are paying a negative rate to open new long positions. This highlights a decrease in demand for Bitcoin, which is a stark contrast to the record-breaking demand seen in March.

Just a few weeks ago, Bitcoin was soaring to an all-time high of $73,000, but now, it has taken a dip of almost 13%, currently trading at $63,400 according to CoinMarketCap.

CryptoQuant reveals a sharp decline in net inflows for spot Bitcoin ETFs. The highly anticipated Bitcoin halving has caused a ripple effect, as miner rewards dwindle, dampening the enthusiasm of traders to enter long positions.

“It certainly means that the desire for traders to open long positions has eased.”

Julio Moreno, CryptoQuant’s Head of Research

As the world watches with bated breath, the once fiery passion for BTC among buyers has begun to wane. The recent surge in risk aversion, fueled by the volatile tensions in the Middle East, has cast a shadow of doubt over the future of this cryptocurrency. Adding to the uncertainty are the anticipated delays in Federal Reserve rate cuts, leaving buyers feeling hesitant and cautious.

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As the funding rate takes a nosedive, so does the influx of daily investments in U.S. spot Bitcoin ETFs. On April 24, a staggering $120.64 million was pulled out of the spot Bitcoin ETF market.

However, amidst this decline, two crypto funds managed to buck the trend and attract fresh capital: the Fidelity Bitcoin Spot ETF (FBTC) with an impressive $5.61 million and the ARK Invest/21 Shares Bitcoin fund with a solid $4.17 million.

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