Crypto News– Bitcoin’s price correction accelerated on Tuesday as U.S.-listed spot exchange-traded funds (ETFs) lost favor among investors.
Biggest Daily Drop in Bitcoin’s Value Since FTX’s Downfall
The primary cryptocurrency by market capitalization dropped over 8% to below $62,000, as per data from charting platform TradingView. This marks the largest single-day percentage decline since November 9, 2022, when prices plummeted over 14% following the bankruptcy of Sam Bankman Fried’s FTX exchange, formerly the third-largest exchange. The daily performance mentioned here reflects the percentage gain or loss in a day, starting at midnight UTC and ending at 23:59:59 UTC.
Prices have retreated by 15% from the record highs of over $73,500 reached last week. The CoinDesk 20 Index has similarly pulled back by 16% over the same period. Bitcoin’s recent downward trend has been fueled by various factors, including outflows from spot ETFs, according to trader and economist Alex Kruger.
Provisional data released by investment firm Farside indicates a net outflow of $326 million from spot ETFs on Tuesday, marking the largest outflow on record. Grayscale’s ETF saw a record outflow of $643 million on Monday.
Kruger outlined the reasons behind the crash, listing excessive leverage, Ethereum (ETH) influencing the market downturn due to the market’s assessment of the ETF not passing, negative BTC ETF inflows, and excessive enthusiasm for Solana as contributing factors.
Ether (ETH), the second-largest cryptocurrency by market capitalization, surged to around $4,000 following last week’s EIP-1559 upgrade but has since declined to $3,130. One factor contributing to the decline has been the diminishing likelihood of the U.S. SEC approving a spot Ether ETF by May.
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