The original cryptocurrency started its decline from $71,229 and was hovering around $65,761 as of 11:40 a.m. ET, according to data from CoinGecko.
So-called meme coins have also fallen, with Pepecoin and Dogecoin dropping 8% and Shiba Inu 11% in the past 24 hours, according to data from CoinGecko.
Part of the decline was due to waning interest in the nine spot Bitcoin ETFs that began trading on January 11th. There was a net outflow of $85.8 million from the fund on Monday, the first time since March 22, according to BitMEX data.
Daily trading volume fell to $5.4 billion, 43% lower than the peak of $9.5 billion recorded in the first week of March, as continued capital outflows from Grayscale's GBTC occurred over the past three weeks. This is putting significant selling pressure on the Bitcoin price. According to BitMEX, nearly $303 million was outflowed from GBTC on Monday, bringing the total since trading began to around $15 billion.
4.4K GBTC leaked #BTC today
Total GBTC outflows since ETF launch: 290,000
We will update our ETF tracker as soon as the new 9 ETF flows become available. pic.twitter.com/pX0BINeJpQ
— Thomas | heyapollo.com (@thomas_fahrer) April 1, 2024
Matteo Greco, research analyst at Finekia International, said prices will rise on optimism that the Securities and Exchange Commission will approve ETFs in the fourth quarter of 2023, and in the first quarter of this year. He said commodity trading fueled growth. , Said luck.
“In the past few weeks, the pace of inflows has slowed for the first time,” he added.
The recent weakness and slowing interest in ETFs also anticipates tighter Fed activity, with CME Group data showing a 95% chance the Fed will maintain its target interest rate at its May meeting. It suggests that.
“The change in views on the Fed is having an impact across cryptocurrencies, and we are seeing a decline as the week begins,” trader Stefan von Harnisch told CNBC on Tuesday.
But Greco believes there's a third factor at play. That's a “fairly typical” price correction as we approach the April 20 halving.
“Bitcoin prices spike, there is a correction near the halving, and they tend to continue rising in the months following the event,” Greco said. “What's happening now has a lot in common with past cycles.”
