- Bitcoin falls below $63,000 due to prolonged ETF outflows and broader economic uncertainty.
- Top 100 digital assets drop 5% in a week, signaling reduced risk appetite among investors.
- Upcoming U.S. ETFs for Ether and continued interest in Solana despite market setbacks.
The cryptocurrency market has suffered significant setbacks, marking its second-worst weekly performance of 2024. Data from Bloomberg indicates that the top 100 digital assets fell a collective 5% last week, the steepest decline since April. This downturn coincides with a decrease in demand for Bitcoin-related exchange-traded funds (ETFs) and lingering uncertainty regarding the U.S. Federal Reserve’s monetary policy strategies.
Bitcoin, the leading cryptocurrency, dropped below $63,000 on Monday, reaching a one-month low. This decline has been fueled by a consistent outflow from U.S. Bitcoin ETFs, which have seen withdrawals for six consecutive days. Analysts are interpreting the pullback in digital currencies as a possible indicator of waning risk appetite across broader markets.
David Lawant, head of research at FalconX, notes that the current market conditions are characterized by low volatility and soft trading volumes. He points out that order books tend to become unbalanced as prices fluctuate, especially at the extremes of their range. This sentiment is reflected in the performance of other cryptocurrencies like Ether and Solana, which have seen their longest streaks of weekly losses since last year and 2022, respectively.
Despite these challenges, the crypto industry is anticipating some positive developments. Several fund companies are preparing to launch the first U.S. ETFs that will directly invest in Ether, the second-largest crypto asset. Meanwhile, Solana continues to attract interest from various digital-asset hedge funds despite its recent losses.
Additionally, Bitcoin miners have sold a massive amount of their Bitcoin holdings in June. According to a report by IntoTheBlock, miners’ reserves have decreased by over 30,000 BTC, or about $2 billion, since the beginning of the month. This suggests that miners are facing financial stress and are being forced to sell their Bitcoin to cover costs.
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