• Asian Bitcoin investors grapple with price swings as algorithmic bots drive buy and sell orders based on flow data.
• Bitcoin dropped another 0.95% to trade at $66,118, continuing its struggle.

Bitcoin Market—Asian investors are experiencing wild swings as automated trading systems react swiftly to data from US exchange-traded funds (ETFs) holding the cryptocurrency. This phenomenon was evident on Tuesday when Bitcoin faced its sharp decline in a month during Asian trading hours, driven by outflows from these ETFs.

According to Shiliang Tang, president of trading firm Arbelos Markets, algorithmic bots are capitalizing on the flow data by automatically executing buy and sell orders, as reported by Bloomberg. 

The launch of several Bitcoin ETFs in the US on Jan. 11 has attracted a substantial $12 billion in net inflows, peaking in mid-March amidst Bitcoin’s record surge to $73,750. However, since then, the crypto market has witnessed intermittent outflows, coinciding with a 10% decline in Bitcoin’s value from its peak. As a result, BTC retraced to $64,610 on Tuesday. 

The repercussions extend to the derivatives market, with Coinglass data indicating a significant liquidation of bullish crypto positions totaling approximately $346 million in the last 24 hours. 

Bitcoin struggled further today, dropping an additional 0.95% to trade at $66,118. Further, expectations about the Federal Reserve interest-rate cuts are rising, dampening sentiment towards cryptocurrencies. Additionally, the upcoming Bitcoin halving scheduled for April 21st is anticipated to fuel further rally in the Bitcoin market.