Tanya Abrosimova
Independent Analyst
- BTC/USD touched $6,400 for the first time since September 29.
- Bitcoin hedge funds are losing both money and customers.
BTC/USD dropped below $6,500 and touched $6,400 handle during Asian hours on Thursday. The downside momentum is gaining traction on breakthrough of an important technical level that supported the coin since September 29. Currently, BTC/USD is changing hands at $6,424.
What’s going on
Bitcoin-focused hedge funds are starting to feel the pain, battered by a steady downside trend on the cryptocurrency markets. The digital coin No. 1 has lost over 54% since the beginning of the year which caused some hefty losses for the market players. Thus, the net asset value of US-based Grayscale Bitcoin Investment Trust (GBIT) hit the lowest level since the cryptocurrency stellar growth in the end of the previous year. The shares of the Trust has followed the same trend and lost 80% since December 2017, when BTC reached its al-time high at $19,511, Bloomberg reports.
Moreover, investors are angry with hefty fees charged by the Trust, saying they are unreasonably high. GBTC takes $20 fee for each $1000 invested.
“Expense ratios are insane for these funds and the current Bitcoin price is creating more problems,” Naeem Aslam from Think Markets U.K explained.
Bitcoin’s technical picture
The local support is created by $6,400 (psychological level and Asian low). Once it is cleared, the downside may be extended towards and $6,327, which is the lowest level since September 25. On the upside, the short-term recovery is capped by $6,500 (former support) with a cluster of 1-hour SMAs seated at $6,540-60. A sustainable movement higher is needed for an extended recovery towards $6,600.
-636741349161489152.png)
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?