Money Poured In, But Market 'Shakes'...Bitcoin, XRP, What's Their Fate This Week?

▲ Bitcoin (BTC), XRP (XRP), Virtual Assets/AI Generated Image

Massive funds flowing into Bitcoin (BTC) and XRP, combined with macroeconomic variables at the end of April, have brought them to a critical test, determining whether this is a stepping stone for a rise or a trap before a fall.

According to crypto media U.Today on April 28 (local time), Bitcoin and XRP spot ETFs recorded net inflows of $2.44 billion and $81.63 million, respectively, throughout April. However, investors are facing a situation where monetary policy, inflation, and signs of economic slowdown are simultaneously putting pressure. The Federal Open Market Committee (FOMC) meeting scheduled for April 29 and the Personal Consumption Expenditures (PCE) price index, which recorded 2.8%, are acting as factors limiting expectations for interest rate cuts.

Soaring energy prices are also fueling market anxiety. Tensions in the Middle East have pushed Brent crude prices up to $108.5, spreading fears of a recession. Coupled with this, the seasonal investment sentiment of 'sell in May and go away' is strengthening, leading to a movement of avoiding risky assets. If the Fed does not send dovish signals, there is a possibility that large-scale profit-taking will flood the market ahead of the summer trading slowdown.

The US first-quarter Gross Domestic Product (GDP) growth rate, to be announced on April 30, is identified as a key variable that will determine the market direction. The current consensus is 2.2%, but some suggest the possibility of it falling to 1.5%. If high inflation and a slowed growth rate are confirmed simultaneously, stagflation concerns could materialize, spreading shock throughout the market. XRP, which reflects individual investor sentiment, cannot rule out the possibility of a sharp reversal from inflows in April to outflows in May.

During the same period, earnings announcements from major tech companies such as Alphabet and Apple are also scheduled. Whether Bitcoin will continue its synchronized trend with tech stocks or strengthen its role as digital gold in a stagflationary environment has emerged as a key observation point this week.

Key indicators and events to be disclosed by April 30 are expected to serve as a benchmark for determining whether the current capital inflow was a signal of an upward turn or a liquidity inflow just before entering a bear market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*