The cryptocurrency market is experiencing increasing losses following its second-worst weekly decrease in 2024.
This decline is attributed to the waning demand for Bitcoin exchange-traded funds, ambiguity surrounding the U.S. Federal Reserve’s monetary policy, and a weak appetite for digital assets, marking the sharpest decline since April.
Bitcoin’s price dropped by almost 5% to $61K, below its one-month low. A six-day run of withdrawals from US ETFs dedicated to the digital asset has battered the top token by market value.
In the last 24 hours, 90,987 dealers were liquidated, resulting in a total liquidation value of $283.23 million.
Crypto market failures coincide with skepticism about the Federal Reserve’s ability to swiftly lower interest rates following a two-decade peak. Some areas have seen particularly noteworthy drops: Ether and Solana have experienced their longest weekly falls since last year and 2022, respectively.
The global crypto market valuation currently stands at $2.24 trillion, a 4.54% decrease over the last day. Bitcoin’s dominance is currently 53.85%, a decrease of 0.19% amid high sell-offs in the altcoin market.
Ethereum, at $3,312, is down about 5% from the previous day and 8% from the past week. This is despite recent reports of substantial long-term holder accumulation during the price decline.
Farside data highlighted that exchange-traded funds (ETFs) tracking Bitcoin have also seen a series of withdrawals over the last six trading days. On June 13, there were outflows of $226.2 million, the most significant of the six days.
This trend continues even as fund managers plan to introduce the first US ETFs that invest directly in Ether, the second-highest-ranked cryptocurrency. Conversely, Solana has recently been favoured by several hedge funds dealing with digital assets.
Although Bitcoin reached a record high of $73,798 in March, traditional assets like gold, bonds, and stocks have outperformed it this quarter. The 200-day moving average, currently at $57,500, is being watched as a potential area of support.
Altcoin Crash
Major cryptocurrencies including Polkadot (DOT), Solana (SOL), and Ripple (XRP) are reporting daily decreases ranging from 5% to 12%, indicating that the broader altcoin market is also in the red.
- Shiba Inu, one of the meme coins, has dropped approximately 9% in the last 24 hours and nearly 20% in the past week, making it one of the most volatile meme coins.
- The last few days have seen a slowdown in Bitcoin whale transactions, just before the price of the cryptocurrency fell below $61K.
- Data from Santiment shows there were 9,923 Bitcoin whale transactions (those worth more than $100,000) in total during the previous two days on June 23.
- This represents a 42% decline from the 17,091 transactions reported in the two days prior.
- Traders had been bullish on digital assets earlier this year, anticipating a dovish turn from the Federal Reserve as inflation recedes, along with a political shift in Washington that might signal a friendlier attitude from U.S. regulators.
