According to CoinDesk: The cryptocurrency market experienced a downturn as Bitcoin ETFs saw a net outflow of $80 million, breaking a seven-day streak of inflows. Leading the decline were major tokens like Dogecoin (DOGE) and XRP, which fell 5% and 4%, respectively, while Bitcoin struggled to maintain momentum after failing to break the $70,000 resistance level.
Key Highlights:
Bitcoinâs Struggle: Bitcoin dropped 1% after a failed attempt to rally towards $70,000. This influenced a broader market decline, with the CoinDesk 20 (CD20) index, which tracks the largest cryptocurrencies by market capitalization, falling by nearly 2%.
Major Tokens Drop: Dogecoin (DOGE) and XRP led the losses among major tokens, both giving up gains from earlier in the week. DOGE had rallied on Elon Muskâs endorsement, while XRP benefited from positive fundamental developments.
ETFs See Outflows: U.S.-listed Bitcoin ETFs saw $80 million in net outflows, with Ark Investâs ARKB product losing a record $134 million. BlackRockâs iShares Bitcoin Trust (IBIT) led inflows with $42 million, while Fidelityâs FBTC and VanEckâs HODL brought in $8 million and $3 million, respectively.
Stablecoin Concerns: Traders pointed to a lack of growth in stablecoin volume as a key reason for the marketâs slowdown. Stablecoins, often used as liquidity for quick crypto purchases, have seen stagnant volume since late September, potentially signaling a broader market slowdown.
Market Outlook: Despite the dip, some traders expect Bitcoin to reach $80,000 in the coming weeks, especially with the U.S. presidential election drawing near. However, concerns about liquidity and resistance levels remain.
Mid-cap and low-cap cryptocurrencies saw little movement, though memecoin BONK and ApeCoin (APE) led losses, each dropping over 7%. Analysts noted that Bitcoinâs failure to break past $70,000 resistance and a pause in stablecoin liquidity are major factors contributing to the marketâs current stagnation.