The cryptocurrency market is experiencing a slowdown, with the overall transaction volume dropping to $63.63 billion. This decline is accompanied by a 17% decrease in the TVL and a drop in the overall cryptocurrency market value to $2.3 trillion. The fear and greed index has also shifted away from the bulls.
There are several reasons for this decline. The prices of Bitcoin and Ethereum, along with many other cryptocurrencies, have fallen due to the market downturn. Bitcoin is now trading at $62,309.95 after a 2% drop, while Ethereum’s price has decreased by 2.2% and is currently trading at $2,999.41. The cryptocurrency market has been relatively stagnant for weeks, with only minor increases in recent days. The decline in Bitcoin Futures ETFs and exchange inflows has negatively impacted investor sentiment, contributing to the bearish conditions.
The exchange Robinhood has recently come under scrutiny from US regulators, leading them to halt support for cryptocurrencies identified as securities by the SEC. This is not the first time Robinhood has made such a decision, as they previously removed support for Cardano, Solana, and Polygon when they were classified as securities involving Binance and Coinbase.
In terms of ETFs, there has been a significant increase in exits from the cryptocurrency market for the fourth consecutive week, resulting in a $251 million decrease in AUM. Despite the launch of Bitcoin and Ethereum ETFs in Hong Kong, exits continued, with $284 million withdrawn from Bitcoin funds. This has affected the popularity of the Bitcoin ETF and directly impacted Bitcoin prices. However, Ethereum saw a record entry of $30 million, breaking its week-long exit streak. The total entry rate in the first week following the launch of the Hong Kong ETFs amounted to $307 million USD. Additionally, the entry value into the Bitcoin exchange has reached its lowest level in the last decade, similar to 2015, with only 20,000 BTC. Long-term holders have also stopped distributing Bitcoin in order to accumulate it again.
It is important for investors to conduct their own research and be aware of the high volatility and risks associated with cryptocurrencies. The information provided in this article does not constitute investment advice. To stay updated, you can follow our news on Telegram, Facebook, Twitter, and Coinmarketcap.
