Crypto News– The price of Bitcoin reached its lowest point in the past two weeks, dropping by 5.18% over the last 24 hours to trade at $61,380 as of 1:50 p.m. Hong Kong time, according to The Block’s Price Page. Ether also experienced a decline of 7.8% to $3,090.
Bitcoin and Ether prices decline as spot Bitcoin ETFs report historic outflows
Both of the largest cryptocurrencies have retreated to their values from the last week of February, mirroring a broader trend seen across the top 10 non-stablecoin crypto tokens in terms of market capitalization, which also experienced declines on Wednesday in Asia.
This price drop coincided with significant outflows from spot Bitcoin exchange-traded funds (ETFs). On Tuesday, U.S. spot Bitcoin ETFs saw outflows totaling $326.2 million, marking the largest outflow since their introduction. GBTC alone witnessed $444 million exiting the fund, while other ETFs saw weaker inflows, according to data from Farside.
Transitioning to Solana
Apart from the outflows from ETFs, Rachael Lucas, the Head of Marketing and Communications at Markets, mentioned to The Block that speculative shifts towards smaller coins like SOL and AVAX, as well as meme coins like WIF, have contributed to the drop in Bitcoin’s price. Notably, there has been a surge in popularity for memecoins on Solana, such as dogwifhat and Slerf, propelled by a $700,000 advertisement on the Vegas sphere. This surge has led to record-high on-chain volumes and fees on the Solana network.
Economist Alex Krüger also expressed concern about the Solana mania, stating that it may have gone too far, highlighting excessive leverage in the crypto market as a significant contributing factor to the decline.
Furthermore, BTC Markets’ Lucas noted that Ethereum’s price is closely linked to Bitcoin’s, while delays in SEC decisions regarding proposed Ether ETFs by Hashdex and ARK 21Shares are increasing uncertainty. Additionally, Grayscale is contemplating adding staking to its Ether ETF application.
The global cryptocurrency market capitalization has dropped by 4.5% in the last 24 hours to $2.42 trillion, as reported by CoinGecko.
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