- The cryptocurrency market faces its second-worst weekly decline in 2024, driven by reduced demand for Bitcoin ETFs and Federal Reserve uncertainty
- Bitcoin’s price dropped nearly 5% to $61,000, hitting a one-month low, impacting 90,987 traders and resulting in $283.23 million losses
The cryptocurrency market suffers significant losses following its second-worst weekly decline in 2024. This downturn is driven by reduced demand for Bitcoin exchange-traded funds (ETFs), uncertainty around the U.S. Federal Reserve’s monetary policy, and a general lack of interest in digital assets. This marks the sharpest drop since April.
Bitcoin’s price has fallen nearly 5% to $61,000, hitting a one-month low. A six-day streak of withdrawals from U.S. ETFs focused on digital assets has severely impacted Bitcoin, the top token by market value.
In the past 24 hours, 90,987 traders were liquidated, resulting in a total loss of $283.23 million.
This crypto market slump aligns with doubts about the Federal Reserve’s ability to lower interest rates following a two-decade high quickly. Ether and Solana have significantly declined, experiencing their longest weekly falls since last year and 2022, respectively.
The global crypto market valuation is now $2.24 trillion, a 4.54% decrease in the last day. Bitcoin’s dominance has fallen to 53.85%, down 0.19% due to heavy sell-offs in the altcoin market.
Ethereum is currently priced 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 shows that Bitcoin-tracking ETFs have seen withdrawals over the past six trading days. On June 13, outflows of $226.2 million, the largest of the six days.
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 recently gained favor with several hedge funds that deal 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. Investors are now watching the 200-day moving average at $57,500 as a potential support level.