Bitcoin Price Plummets to OneMonth Low as Crypto Market Crashes Today with 600M in Digital Asset Outflows
Bitcoin experienced a sharp drop to a one-month low due to significant outflows from digital-asset investment products and concerns over prolonged high US borrowing costs. On June 18th, 2024, BTC plummeted by 2.1%, hitting levels not seen since mid-May before stabilizing.
A staggering $600 million was withdrawn from digital-asset products last week, as reported by CoinShares International, marking the largest outflow since March. Traders have scaled back their expectations for Federal Reserve interest-rate cuts amidst persistent inflation worries, posing a challenge for speculative investments like cryptocurrencies.
Comparative analysis reveals that stocks and bonds have outperformed Bitcoin in the current quarter, a stark difference from the previous quarter where digital assets surpassed traditional markets. This shift highlights the volatile and speculative nature of the cryptocurrency market.
As of 2024, Bitcoin’s price stands at $65,634, down from its early June peak of $71,100. The cryptocurrency experienced an uptrend in early February, potentially fueled by the demand for US exchange-traded funds. Despite peaking at $73,798 in mid-March, Bitcoin’s rally has cooled off alongside a decline in ETF flows.
Technical indicators show that the 30-period Simple Moving Average of Bitcoin is $68,457, while the 30-period Exponential Moving Average is $67,416, both exceeding BTC’s current value of $65,634.
The total market cap for Bitcoin ETFs is $82.04 billion, with Bitcoin Futures accounting for $2.31 billion and Bitcoin Spot ETFs at $79.74 billion. Over the past 24 hours, Bitcoin ETFs saw a trading volume of $1.38 billion, with Bitcoin Futures ETFs at $160.31 million and Bitcoin Spot ETFs at $1.22 billion.
Bitcoin’s recent decline underscores the challenges faced by the cryptocurrency market, influenced by macroeconomic factors and investor sentiment. As traders navigate these fluctuations, the future of Bitcoin continues to be a subject of intense interest and speculation.