Bitcoin’s price volatility has been on full display recently, with the asset experiencing sharp declines from $66,400 to $64,000 multiple times in the past week. The failure to break above $70,000 has resulted in painful rejections, pushing the price down to under $65,000 by the end of the week. Over the weekend, Bitcoin managed to reclaim some lost ground, standing just above $66,000. However, the start of the new business week brought another leg down towards $64,000, testing monthly lows.
Outflows from Spot Bitcoin ETFs
Amidst these price fluctuations, Bitcoin has witnessed continuous outflows from spot Bitcoin ETFs. After a brief pause on June 19th, withdrawals spiked to close to $140 million recently, with Grayscale’s GBTC outplacing other funds. As a result, Bitcoin’s market cap has slumped to $1.265 trillion, with its dominance over the altcoins slightly increasing to 51.5%.
While Bitcoin’s struggles have been evident, the altcoin market has also taken a hit. Ethereum (ETH) is down by over 3% and is trading below the key support level of $3,500. Other major altcoins like Binance Coin (BNB), Solana (SOL), Shiba Inu (SHIB), Polkadot (DOT), Chainlink (LINK), XRP, Dogecoin (DOGE), and Cardano (ADA) have also seen significant losses.
However, the biggest losers in the market recently have been meme coins. Tokens like WIF, JASMY, BONK, BRETT, PEPE, and FLOKI have all witnessed sharp declines of more than 8% in a single day, with market capitalization across all crypto assets dropping by about $50 billion.
The cryptocurrency market is currently facing a challenging period, with Bitcoin struggling to break key resistance levels and altcoins facing significant downward pressure. The recent outflows from spot Bitcoin ETFs and the overall market cap decline indicate a cautious sentiment among investors. As always, it is essential for market participants to closely monitor price movements and be prepared for further volatility in the coming days.
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