BTC briefly drops below 60K, MicroStrategy plunges 17%! With a lack of speculative topics, is the Bitcoin bull market coming to an end?

Bitcoin (BTC) broke through the $60,000 mark at 3:00 am on May 1st, reaching as low as $59,191, with a nearly 10% drop in 7 days. Despite various Bitcoin-related discussions, it did not bring about the desired increase in Bitcoin, and at the same time, Ethereum (ETH) also fell below $3,000. Negative evaluations of EigenLayer's token issuance have added uncertainty to the market of leveraged derivatives that have created a significant bubble.

ETF Market Cools Down, Unexpected Effect for Hong Kong ETFs

The U.S. ETF market has seen net outflows for four consecutive days, and as of 4/30, the selling pressure on GBTC remains strong, which may continue the trend of net outflows.

On 4/30, Bitcoin and Ethereum spot ETFs were launched in Hong Kong, sparking anticipation from some domestic and foreign communities. However, the total trading volume on the first day was only over $12 million, far below the volume of U.S. ETFs. The debut of trading did not have a significant impact on the price of Bitcoin.

The trading volume of cryptocurrency ETFs in Hong Kong is significantly different from that in the U.S., with Huaxia Fund holding the highest market share among the six ETFs.

Inflation Concerns Lead to Stock Market Decline, MicroStrategy Plunges 17%

The stock market experienced a decline due to concerns about wage growth leading to inflation. The market is uneasy about the Federal Reserve's interest rate decision on Wednesday, with the Dow Jones index falling 300 points and MicroStrategy (MSTR) plunging 17%.

Since Bitcoin's fall from its all-time high, the discrepancy between MicroStrategy's Bitcoin holdings and its stock market value has been a topic of discussion. Founder Michael Saylor has been selling stocks for profit, and brokerage firms have lowered MSTR's target price, indicating the current instability of MicroStrategy's stock price.

Michael Saylor's daily stock selling plan is nearing its end, with $370 million in MicroStrategy stocks sold.

Bitcoin Ecosystem Still Weak, Lacks External Funding

Despite the Bitcoin ecosystem incorporating Layer 2, sidechains, scripts, and runes for simulating smart contract public chains, which have increased Bitcoin transaction fees and boosted miner income, the funds involved are primarily internal transfers within the industry. This is different from U.S. stock ETFs, which attract external new capital. Therefore, these internal fund transfers may not have a long-term impact on the price of Bitcoin.

ETH Staking Reveals Bubble Risks, LRT Value Redefined

The EigenLayer coin issuance plan has exposed the LRT bubble, with the token EIGEN being airdropped but temporarily not in circulation. The LRT protocol's airdrop is scheduled for the second phase, causing many liquidity staking protocols to be left out. The LRT derivative protocol Pendle, utilizing interest rate token YT, allows users to speculate on airdrop expectations at lower costs. Following the EigenLayer announcement, the price of YT has plummeted significantly, creating more uncertainty for speculators.

Daily Coin Research: EigenLayer Promising Future

Additionally, the LRT protocol Renzo REZ's coin issuance has failed miserably, with prices plummeting at the opening, further destabilizing the value of tokens related to liquidity staking protocols.

While EigenLayer brings promising applications, whether the token price meets market expectations is gradually becoming a reality, leading to significant adjustments in the prices of staked tokens.

Pendle Finance's on-chain interest rate derivative market perfectly enhances LRT capital efficiency.

Speculation Continues, But the Trend Has Slowed

The previous bull market heavily relied on quantitative easing in the overall economy, driving topics such as DeFi, NFTs, and Play-to-Earn (P2E).

The current bull market may only see significant external funds entering through Bitcoin ETFs. Economic factors are still not favorable for speculative markets, and although various topics are brewing within the industry, they may at best support a Bitcoin bull market, with other competing cryptocurrencies lacking external funding.

Following the optimistic expectations for Bitcoin, the speculative topics surrounding alternative cryptocurrencies have recently dried up.