Chai! E be like say Bitcoin don catch cold again o! E don drop almost 20% this past week make e reach around $70,500. Na wah! Investors don dey withdraw money from US spot bitcoin exchange-traded funds (ETFs), and this one no good at all.
As e be, Bitcoin don dey face wahala wey make am dey fall below $70,000, which we no see since November 2024. For Bitstamp this morning, e don waka down to £51,419. Other exchanges like Coinbase too no dey show better numbers, as dem also record low just around $70,002.
This bearish market no just dey affect Bitcoin alone; e dey shake the whole crypto ecosystem! Na traditional investors wey dey turn their eyes away from crypto because of fear say US government no go bail out cryptocurrencies. Wetin e mean? E mean dem no want put their money for wahala wey fit burst.
Na as investors dey pull their capital, na im BlackRock’s ETF dey lead the charge with $373 million wey don comot. Other coins dey feel am too, sha, as spot ethereum ETFs see net outflows of $79.48 million, while XRP just get small inflow of $4.83 million.
Analysts dey talk say this wa as investors dey shift their attention from risk assets to traditional safe havens like gold. Na gold na im dey rise, while Bitcoin dey reason like say dem dey run away from reality. According to Wenny Cai, COO for Synfutures, the macro environment dey fragile, and things dey favor the dollar as e dey show muscle against crypto.
Cai still talk say this sell-off no mean say institutional investors don gree commot from crypto; dem just dey make adjustments as market conditions dey change. E still dey happen as Bitcoin go below $70,000 as dem dey unwind their position after the ETF rally wey don pass.
Meanwhile, economist Nouriel Roubini don come drop him own matter for di gist, he dey argue say Bitcoin dey behave like leveraged risk asset instead of wetin dem dey tout am as safe haven. According to am, e don dey prove better than gold, wey dey rise while Bitcoin dey fall. Na wah, how we go hear this kind talk for 17 years after Bitcoin don launch?
Even though sentiments dey bearish right now, no be all hope don waka. E get some areas wey blockchain dey shine bright; real-world assets dey still find their level under tokenization. This one show say money no dey leave blockchain space, but e dey shift how dem dey use am. Recent launches wey dey focus on tokenised credit and real estate dey rise even as the speculative tokens dey cool.
The matter no be say investors dey gree run from crypto entirely, but dem just dey follow new trends wey fit bring dem better gains. With all these changes, we go need to dey watch if same market movement go continue as we enter the new month.
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