Bitcoin
Falls to $63K amid regulatory woes, ETF outflows By Investing.com
Investing.com – The price of Bitcoin fell on Tuesday as sentiment towards cryptocurrencies showed little sign of improving amid regulatory issues and as outflows from investment products, specifically exchange-traded funds, remained in play.
The price fell 1% in the last 24 hours to $63,558.2 at 01:52 ET (05:52 GMT).
Sentiment towards cryptocurrency markets was dented this week by a report showing that less than 10% of global transactions of stablecoins – which are a key vehicle for cryptocurrency transactions – were organic or from real users.
The report raised questions about how much retail demand actually existed for crypto, given that stablecoin operators, specifically, have recorded consistent increases in market capital.
Additionally, trading app Robinhood Markets Inc (NASDAQ:) said it was facing potential regulatory action from the Securities and Exchange Commission (SEC) 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 cryptocurrency investment products, indicating that sentiment towards the space remained largely negative.
Bitcoin ETF Outflows Extend for Third Consecutive Week
Data from digital asset manager CoinShares showed on Monday that crypto investment products saw a third consecutive week of sustained capital outflows.
Overall outflows totaled $435 million, with Bitcoin products recording outflows of $423 million.
Outflows from Grayscale’s Bitcoin ETF still accounted for the majority of overall outflows. But capital flows to other Bitcoin ETFs have also declined substantially.
The weakening in flows came amid a dearth of immediate signals for cryptocurrency markets after the Bitcoin halving event passed with little fanfare. The token has also become quite limited after reaching record levels in March.
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Crypto Price Today: Ethereum Sinks as SEC Postpones ETF Decision
Among major altcoins, it fell 3.4% to $3,069.52 after the SEC delayed a decision to approve spot ETFs that track the altcoin for US markets.
The regulator is now expected to make a decision only at the beginning of July. The SEC also has an ongoing investigation into whether Ethereum is a security, and is expected to reject applications for an Ethereum ETF outright.
Other alternative currencies saw mixed movements as speculation about US interest rate cuts remained in play.
rose 0.3%, while it rose 3.8%.