The cryptocurrency market is down due to the following reasons :
Mt. Gox’s $9 billion Bitcoin transfer: Approximately $9 billion in BTC was transferred from Mt. Gox’s cold wallet to an unknown address. This has raised concerns about a potential dump and caused fear among investors.
Slowing inflows of U.S. spot Bitcoin ETFs: The collective net outflow of around $563.7 million from 11 Spot Bitcoin ETFs since April 2024 has contributed to the decline. This is the largest outflow since the funds began trading on January 11.
Federal Market Committee (FOMC): Crypto market analysts do not expect the FOMC to change interest rates, as investors are gradually getting used to the fact that the U.S. central bank may not cut rates at all this year.
Outflows from BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC: BlackRock’s IBIT experienced its first-ever outflow, with nearly $36.9 million exiting the fund. Fidelity’s FBTC also saw outflows, losing $191.1 million in withdrawals. This has contributed to the decline in the crypto market.
