Bitcoin encountered another dip below $65,000 for the second time in three days, influenced by substantial outflows from spot Bitcoin exchange-traded funds (ETFs) last week. Starting from an opening of $66,629, Bitcoin saw a decline to an intra-day low of $65,050 on June 17. Currently, the cryptocurrency is trading at $64,800, marking a 2.56% drop within the past 24 hours.
This recent correction forms part of a broader downtrend that saw Bitcoin hitting a recent low of $60,005 on June 14, coinciding with significant outflows from digital asset investment products. According to CoinShares’ latest report, these outflows amounted to $600 million last week, marking the conclusion of a five-week period of inflows into crypto investment products. The report attributes this downturn to mixed macroeconomic indicators from the U.S. and a hawkish stance from the Federal Open Market Committee (FOMC), which reduced the anticipated rate cuts for 2024 from four to one.
Bitcoin was particularly affected by this negative sentiment, experiencing outflows totaling $621 million, whereas short-Bitcoin products saw marginal inflows of $1.8 million. Data from Farside Investors further supports this trend, revealing net outflows of $580 million from spot Bitcoin ETFs for the week ending June 14.
These substantial outflows from Bitcoin investment vehicles signify declining investor interest, adding downward pressure to Bitcoin’s price. Meanwhile, large-cap altcoins have shown better performance compared to Bitcoin over the past week. XRP and Toncoin, for instance, posted gains of 4% and 11% respectively, as per CoinMarketCap data. Despite Bitcoin’s 5.6% decrease during the same period, it maintained a comparative advantage over several altcoins, including Solana and BNB Chain.
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