THIS IS THE CAUSE OF BITCOIN AND ALTCOIN PRICES TO CALL:
Cryptocurrency prices have recently experienced a significant decline. The cause of this decline is strongly suspected to be due to outflows in ETFs and digital asset investments as well as the FED's decision to hold interest rates.
At the time this article was written (18/6/2024), the price of Bitcoin was trading at around US$65,433, declining by 1.4% in the last 24 hours. Bitcoin's market capitalization also decreased by 1.5% to US$1.2 billion.
This largest cryptocurrency has experienced a decline of up to 4% in the past week since the Federal Reserve announced its decision to maintain the United States' benchmark interest rate in June.
Bitcoin's sluggish performance also affected other cryptocurrencies, such as Ethereum which fell more than 4.4% to US$3,427, according to CoinMarketCap data. Drastic declines also occurred in various large altcoins such as SOL (9.4%), DOGE (10%), ADA (8.8%), and SHIB (12%).
Overall, the decline in cryptocurrency prices caused 193,278 traders to be liquidated, with total liquidations reaching US$483.31 million according to data from Coinglass.
High Outflow from Crypto Investment Products
Reporting from CoinShares, crypto investment products experienced a weekly fund outflow of US$600 million last week, recording the highest record since March 22, 2024.
The recent outflows and sell-off caused total assets under management (AUM) to fall from above US$100 billion to US$94 billion in the week. Regionally, the US experienced most of the US$565 million outflow, followed by other countries such as Canada, Switzerland and Sweden.
These outflows were primarily focused on Bitcoin, totaling US$621 million. On June 17 alone, data from Farside Investors shows spot Bitcoin ETFs in the US recorded outflows of US$145.9 million.
This investment product experienced outflows on four out of five trading days last week.
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