The cryptocurrency market is experiencing significant losses after enduring its second-largest weekly decline of 2024. This downturn is attributed to decreasing interest in Bitcoin exchange-traded funds (ETFs), uncertainty about the U.S. Federal Reserve’s monetary policy, and reduced demand for digital assets, marking the steepest drop since April.
Bitcoin’s value has plummeted nearly 5% to $61,000, reaching a one-month low. A six-day streak of withdrawals from U.S. ETFs focused on digital assets has heavily impacted Bitcoin, the leading cryptocurrency by market value.
In the past 24 hours, 90,987 traders were liquidated, resulting in a total liquidation value of $283.23 million. These market failures coincide with skepticism regarding the Federal Reserve’s ability to swiftly reduce interest rates following a two-decade peak. Ether and Solana have seen particularly notable declines, experiencing their longest weekly falls since last year and 2022, respectively.
The global crypto market is currently valued at $2.24 trillion, a 4.54% decrease over the last day. Bitcoin’s market dominance has slipped to 53.85%, down 0.19% amid significant sell-offs in the altcoin market.
Ethereum’s price stands at $3,312, down about 5% from the previous day and 8% over the past week, despite reports of substantial long-term holder accumulation during the price drop. Farside data indicates that Bitcoin-tracking ETFs have faced continuous withdrawals over the last six trading days, with June 13 seeing the largest outflow of $226.2 million.
This trend persists even as fund managers plan to launch the first U.S. ETFs investing directly in Ether, the second-largest cryptocurrency. Conversely, Solana has recently been favored by several digital asset hedge funds.
Despite Bitcoin reaching 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 support level.
Altcoin Decline
Major cryptocurrencies, including Polkadot (DOT), Solana (SOL), and Ripple (XRP), are reporting daily decreases ranging from 5% to 12%, indicating broader declines in the altcoin market. Shiba Inu, a meme coin, 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.
Recent days have seen a slowdown in Bitcoin whale transactions just before the cryptocurrency’s price fell below $61,000. Data from Santiment shows 9,923 Bitcoin whale transactions (those worth more than $100,000) in the previous two days as of June 23, a 42% decline from the 17,091 transactions reported in the two days prior.
Earlier this year, traders were optimistic about digital assets, anticipating a dovish turn from the Federal Reserve as inflation recedes, along with a potential regulatory shift in Washington signaling a friendlier attitude from U.S. regulators.
Credit: Nairametrics (Text Excluding Headline)
