Bitcoin crashes to $60,000 on waning demand for ETFs

AFRICAN STOCKS AND FINANCEJune 24, 2024 at 4:09 PM UTC

TLDR

Cryptocurrency market experiences significant losses with Bitcoin dropping to $60,000 following a six-day streak of US ETF withdrawals.
Coin Metrics reports over 4% drop in Bitcoin price, reaching $61,211.00, and over 8% decline in the past week.
Factors contributing to this downturn include decreasing demand for Bitcoin ETFs, uncertainty around the U.S. Federal Reserve's policy, and low interest in digital assets overall.

The cryptocurrency market is facing increasing losses following its second-worst weekly decrease in 2024, as Bitcoin continued its decline to $60,000 on Monday. A six-day streak of withdrawals from US ETFs dedicated to digital assets has impacted the coin.

Bitcoin dropped by more than 4% to $61,211.00 as of 14:27:19 GMT, after earlier falling to $60,666.30, its lowest level in over a month per Coin Metrics. It has declined by more than 8% in the past week.

This downturn is attributed to waning demand for Bitcoin exchange-traded funds, uncertainty surrounding the US Federal Reserve’s monetary policy, and a weak appetite for digital assets, marking the sharpest decline since April.

Key Takeaways

Digital asset investment products experienced a second consecutive week of outflows, according to CoinShares. Last week, crypto investment products recorded their lowest trading volumes globally since the launch of U.S. Bitcoin ETFs in January. Over the past two weeks, there have been outflows of up to $1.2 billion from crypto ETFs, starting after the FOMC meeting. Analysts suggest that ongoing pessimism regarding the number of anticipated rate cuts is negatively impacting sentiment towards cryptocurrencies.

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