Since 2024, when the cryptocurrency market saw its second-worst weekly decline, losses have been mounting. The steepest decrease since April is ascribed to the declining taste for digital assets, uncertainty surrounding the monetary policy of the U.S. Federal Reserve, and waning demand for Bitcoin exchange-traded funds.
The price of bitcoin fell to $61K, below its one-month low, by over 5%. The leading coin by market value has been severely damaged by a six-day withdrawal spree from US ETFs devoted to the digital currency. With 90,987 dealers liquidated on the last day, the total liquidation value came to $283.23 million.
Failures in the cryptocurrency market are correlated with doubts about the Federal Reserve’s capacity to quickly cut interest rates after a high that lasted two decades. Notable declines have been observed in a few areas: Ether and Solana have witnessed their longest weekly decreases since 2022 and last year, respectively.
As of right now, the value of the entire cryptocurrency market is $2.24 trillion, down 4.54% from the previous day. The market share of Bitcoin is 53.85%, down 0.19% due to significant sell-offs in other cryptocurrencies.
With a price of $3,312, Ethereum is down 8% over the last week and roughly 5% from the day before. This is in spite of recent reports that, throughout the price collapse, there was significant long-term holder accumulation.
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.
