Bitcoin Records its Worst Month Since FTX Collapse Amid Diminishing ETF Enthusiasm

Bitcoin has had its toughest month since the collapse of FTX, with the excitement over US spot Bitcoin ETFs fading away. In April, the cryptocurrency’s value dropped by nearly 16%, which was only marginally better than the decline seen in November 2022. The surge in demand driven by ETF expectations pushed bitcoin to a record high of nearly $74,000 in March. However, as optimism for Federal Reserve interest-rate cuts waned and risky investments lost their appeal, inflows to these products significantly decreased. In April, there was a net outflow of $182 million from the 11 US spot ETFs, a sharp contrast to the net inflow of $4.6 billion recorded in March.