The price of the flagship cryptocurrency was last down by more than 4% at $61,211.00, according to Coin Metrics. Earlier, it fell to $60,666.30, its lowest level in more than a month. It's down more than 8% in the past week.
Digital asset investment products notched a second consecutive week of outflows, according to CoinShares. Last week crypto investment products saw their lowest trading volumes globally since the U.S. bitcoin ETFs launched in January. "We have now seen $1.2 billion of outflows from crypto ETFs over the last two weeks which all began after the FOMC meeting. Our belief is that continued pessimism over the number of rate cuts is weighing on sentiment for crypto," James Butterfill, head of research at the crypto-focused asset manager, told CNBC.
Eleanor Gaywood, head of strategy at Coincover, said there are often market jitters ahead of the personal consumption expenditure index, the Fed's preferred inflation gauge, which is due this Friday. She said signs of a rate cut in September could ease investor nerves and steady bitcoin's price.Additionally, bitcoin saw a jump in long liquidations, which forces traders to sell their assets at market price to settle their debts. In the past 24 hours, $97.
For the month, bitcoin is down nearly 10%. At the start of June it briefly touched the $71,000 level but has been on a steady decline since. It has been largely stuck in a narrow range between $60,000 and $70,000 since the middle of March, when it reached its all-time high of $73,797.68.Here’s how Coinbase would benefit from U.S. ether ETFs if approved, according to JMP