Losses Pile Up in Crypto Market After Bitcoin ETFs Demand Cools

A gauge of the largest 100 digital assets fell about 5% in the seven days through to Sunday, the worst such decline since April.

Crypto losses mount amid ETF outflows, monetary policy uncertainty

NEW YORK After notching the digital asset market’s second-worst weekly drop of 2024, cryptocurrencies showed further weakness on Monday as outflows hit bitcoin exchange-traded funds and traders assessed the outlook for monetary policy.

A gauge of the largest 100 digital assets fell about 5% in the seven days through to Sunday, the worst such decline since April.

The slide comes amid a broader market downturn, with the S&P 500 set to snap a seven-week rally and the Nasdaq 100 posting its steepest slide since March. Still, cryptocurrencies have enjoyed a strong 2024, with the seven-day gauge of top tokens rising more than 160% this year.

Bitcoin dropped below $63,000 on Monday to hit its lowest in more than a month, pressured by a six-day streak of outflows from US ETFs for the token.

The largest digital asset slipped to around $62,763 by 01:18 ET (05:18 GMT). It was last down about 4.3% over the past 24 hours.

Bitcoin had hit a record of $73,798 in March and was set to post a quarterly gain of more than 40%. But the token has clocked seven weekly declines in the past 10 weeks, and is trailing traditional assets such stocks, bonds and gold this quarter.

The cracks in crypto come amid doubts about the US Federal Reserve’s scope to cut interest rates quickly from a two-decade high.

For some analysts, the retreat in digital assets is a warning sign for broader risk appetite.

“The current crypto market dynamic is characterised by low volatility, soft volumes and order books getting unbalanced when prices start to move to the edges of their range,” David Lawant, head of research at crypto-focused liquidity provider FalconX, wrote in a note.

“This structure is prone to sharp price moves in either direction when the imbalance becomes significant.”

The drops in some corners are particularly notable: the run of weekly declines for ether and solana are the longest since last year and 2022 respectively.

Ether ETFs

The seven-day declines come even as fund companies prepare to launch the first US ETFs that will invest directly in ether, the second-ranked crypto asset.

Ether was set to post its biggest weekly drop since May. The token slipped to around $4,813 by 01:18 ET, down about 5.3% in 24 hours.

Solana, meanwhile, was very recently a favourite for a variety of digital-asset hedge funds. But the token has clocked seven straight weeks of declines, its longest losing streak since solana’s 2022 debut in the seven-day gauge.

The token fell to around $101 by 01:18 ET, down about 6.5% in 24 hours. It was last seen changing hands at $100.5, a level not seen since early January.

Among other tokens, XRP fell about 2.3%, while dogecoin and cardano both dropped more than 4%.

Stablecoin tether rose marginally.

News source：https://www.kdj.com/cryptocurrencies-news/articles/losses-pile-crypto-market-bitcoin-etfs-demand-cools.html

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