Alex Omenye
The cryptocurrency market is reeling from increasing losses following its second-worst weekly decrease of 2024.
This downturn is driven by declining demand for Bitcoin exchange-traded funds, uncertainty regarding the U.S. Federal Reserve’s monetary policy, and a general lack of interest in digital assets.
This marks the sharpest decline since April.
Bitcoin’s price has fallen nearly 5% to $61,000, reaching a one-month low.
This drop coincides with a six-day streak of withdrawals from U.S. ETFs focused on Bitcoin, which has significantly impacted the top cryptocurrency by market value.
Bitcoin recently dropped by 3.5% as the German government sold off $325 million worth of Bitcoin.
Additionally, Bitcoin fell to $65,000 last week due to a spike in sell-offs by miners, marking a two-month high in such activities.
Both Ether and Solana have recorded their longest weekly declines since last year and 2022, respectively. Ethereum’s price stands at $3,312, down about 5% from the previous day and 8% over the past week. This is despite reports of substantial long-term holder accumulation during the price dip.
The global cryptocurrency market is currently valued at $2.24 trillion, reflecting a 4.54% decrease over the past day.
Bitcoin’s market dominance has also dropped to 53.85%, a 0.19% decrease, amid heavy sell-offs in the altcoin market.
The ongoing price declines and high volatility underscore the challenges faced by the cryptocurrency market as it navigates regulatory uncertainties and shifts in investor sentiment.
Data from Farside reveals that exchange-traded funds tracking Bitcoin have experienced significant withdrawals over the past six trading days. On June 13, outflows peaked at $226.2 million, marking the largest single-day withdrawal in this period.
This trend persists even as fund managers prepare to launch the first U.S. ETFs that invest directly in Ether, the second-largest cryptocurrency. Meanwhile, Solana has garnered increased interest from hedge funds specializing in digital assets.
Despite Bitcoin reaching a record high of $73,798 in March, traditional assets such as gold, bonds, and stocks have outperformed it this quarter. Analysts are closely monitoring Bitcoin’s 200-day moving average, currently at $57,500, as a critical support level.
Major cryptocurrencies, including Polkadot, Solana, and Ripple, have reported daily declines ranging from 5% to 12%, reflecting a broader downturn in the altcoin market.
Shiba Inu, a prominent meme coin, has dropped approximately 9% in the last 24 hours and nearly 20% over the past week, highlighting its volatility.
In recent days, there has been a noticeable slowdown in Bitcoin whale transactions, just before the cryptocurrency’s price fell below $61,000.
Data from Santiment indicates there were 9,923 Bitcoin whale transactions (each worth more than $100,000) on June 23, representing a 42% decrease from the 17,091 transactions reported two days earlier.
Earlier this year, traders were optimistic about digital assets, expecting a dovish shift from the Federal Reserve amid easing inflation and a potential political shift in Washington that might lead to more favorable regulations for cryptocurrencies.
However, recent market performance suggests that optimism has waned amid the ongoing price decline.
