Bitcoin price today: drops to $63k amid regulatory woes, ETF outflows

Bitcoin price fell on Tuesday as sentiment towards cryptocurrencies showed little signs of improvement amid regulatory woes and as outflows from investment products, specifically exchange-traded funds, remained in play.

The world’s largest cryptocurrency fell 1% in the past 24 hours to $63,558.2 by 01:52 ET (05:52 GMT). 

Sentiment towards crypto markets was battered this week by a report showing that less than 10% of overall stablecoin transactions- which are a key vehicle for transacting in crypto- were organic or from real users. 

The report raised questions over just how much retail demand there actually was for crypto, given that stablecoin operators, specifically Tether- clocked consistent increases in market capital. 

Additionally, trading app Robinhood Markets Inc (NASDAQ:HOOD) said it was facing potential regulatory action from the Securities and Exchange Commission over crypto tokens traded on its platform. The SEC was also seen postponing a key decision on ETFs.

The negative factors came amid sustained outflows from crypto investment products, indicating that sentiment towards the space remained largely negative. 

Bitcoin ETF outflows extend into third straight week

Data from digital asset manager CoinShares showed on Monday that crypto investment products saw a third straight week of sustained capital outflows. 

Overall outflows amounted to $435 million, with Bitcoin products seeing outflows of $423 million.

Outflows from Grayscale’s Bitcoin ETF still made up a bulk of the overall outflows. But capital inflows into other Bitcoin ETFs were also seen slowing substantially.

Weakening flows came amid a dearth of immediate cues for crypto markets, after Bitcoin’s halving event passed with little fanfare. The token was also largely rangebound after surging to record highs in March.