What's next for Bitcoin as the ETF craze starts to die down?

As the end of the second quarter nears, crypto investors can only speculate on the future of Bitcoin after its recent pullback from the highs reached during the height of the excitement surrounding exchange-traded funds (ETFs).

Bitcoin, the original cryptocurrency , is down roughly 14.3% since March 14, in stark contrast to impressive gains of more than 50% over the previous two quarters. After reaching an all-time high of nearly $73,800 in mid-March, Bitcoin ended this quarter at around $61,000.

This decline has raised concerns about the sustainability of impulse trades like Bitcoin, especially with the looming possibility of continued interest rate hikes affecting financial markets.

According to many crypto experts, one indicator of waning interest is the slowing demand for US ETFs.

According to data from CoinShares, in the second quarter, investors put about $2.6 billion into Bitcoin funds, which is a significant drop from the first quarter of about $13 billion invested.

Source: CoinShares

Matthew O'Neill, co-director of research at Financial Technology Partners said:

There was considerable excitement surrounding the launch of the ETFs, followed by a natural price correction following the rally.

O'Neill also explained that ETFs have attracted professional investors seeking exposure to Bitcoin through institutional channels. He also believes that those who have not yet invested in these ETFs may be waiting for the next upward movement in the price of Bitcoin .

At the time of writing (July 1, 12:40 p.m. Bulgarian time), the cryptocurrency is trading at just under $63,000, which reflects a 2.2% increase over the last 24 hours.