In A Nutshell:
Bitcoin prices fell sharply due to significant outflows from exchange-traded funds (ETFs) and reduced interest in crypto assets amid a strong US dollar and high interest rates.Bitcoin prices dropped significantly on Friday, impacted by substantial withdrawals from Bitcoin exchange-traded funds (ETFs) throughout the week and diminishing enthusiasm for crypto assets amidst the persistent high interest rate environment, which continues to strengthen the US dollar.
By 09:07 ET (13:07 GMT), Bitcoin was down 3.5% at $63,665.8, marking its lowest level in over a month. Despite this decline, Bitcoin remained within the $60,000 to $70,000 range that has persisted for several months.
U.S.-listed spot Bitcoin ETFs recorded their fifth consecutive day of outflows on Thursday, with over $900 million withdrawn so far this week.
Data from SoSoValue revealed that the 11 listed ETFs lost $140 million on Thursday, with trading volumes hitting $1.1 billion. Grayscale’s GBTC, which has seen frequent outflows since its conversion to an ETF in January, led the withdrawals with $53 million, followed by Fidelity’s FBTC at $51 million.
BlackRock’s IBIT, the largest ETF by assets, was the only one to see net inflows, gaining $1 million. Other ETFs showed no significant net inflow or outflow activity.
This recent wave of outflows is the worst since late April, when total net outflows reached $1.2 billion between April 24 and May 2. Inflows picked up afterward, adding over $4 billion in the following 19 trading days before the current outflow trend began on June 10.
Bitcoin prices have struggled in recent weeks due to $1 billion in sales from large holders, a strong U.S. dollar, and a robust U.S. technology index market.
Altcoins mirrored Bitcoin's decline, with the second-largest cryptocurrency, ETH/USD, sliding 3% to $3,482.90 at the time of writing. Other major altcoins like XRP, ADA/USD, and Solana dropped between 2% and 5%.
Among meme coins, DOGE/USD fell 1.8% and SHIB/USD dipped 4.3%.
