Bitcoin BTC
-1.089%
seems to be heading towards its first monthly loss, potentially ending a seven-month streak where it closed each month at a higher value than it started — a trend that has persisted since August.
The largest digital asset by market capitalization commenced April with a price hovering around $70,000. However, as the month draws to a close, bitcoin is presently hovering just above the $61,000 mark — indicating a monthly decline of over 12%.
According to Coingecko data, bitcoin’s monthly chart candles show April as the asset’s first monthly loss since August 2023. Expanding on the data, April’s downturn represents the largest monthly fall since June 2022, when bitcoin opened the month priced around $31,000 but closed lower at $21,000.
Bitcoin’s monthly chart candles show April as the asset’s first monthly loss since August 2023. Image: Coingecko.
Bitcoin’s bullish momentum faces headwinds
A combination of several factors dampens the bullish momentum propelling bitcoin at the start of the month. These factors include a slowdown in demand for spot exchange-traded funds, the prospect of higher-for-longer interest rates and a broader risk-off sentiment pervading equity markets.
According to Nansen Principle Research Analyst Aurelie Barthere, the recent downturn in the cryptocurrency market has resulted in a disproportionate number of negative returns relative to positive returns, affecting traders’ risk-on sentiments.
“Our analysis suggests that the recent crypto sell-off has dampened risk-on sentiments among traders, leading to a pronounced negative skew in return distribution,” Barthere said in an email sent to The Block.
Potential for market recovery
However, the Nansen analyst anticipates market recovery following a period of subdued activity — possibly focusing on major tokens.
Bitcoin decreased by around 1.45% in the past 24 hours, changing hands for $61,689 at 6:15 a.m. ET, according to The Block’s Price Page. The GM 30 Index, representing a selection of the top 30 cryptocurrencies, has decreased by 2.6% to 126.45 in the past 24 hours.
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