Bitcoin is experiencing a reality check after reaching record highs last week. The leading cryptocurrency is on track for its biggest one-day drop in two weeks, plunging over 5.7%. This decline reflects a broader sell-off in risky assets, including stocks.
Bitcoin was trading at $63,640 by 09:35 GMT, a 5.8% decrease. Other major cryptocurrencies haven’t been spared either, with Ethereum (ETH) and Ripple (XRP) seeing significant losses of 7% and 9% respectively.
Despite the recent price slide, Bitcoin is still holding onto a healthy 50% year-to-date gain. This is largely due to investor interest in spot Bitcoin ETFs. However, record highs coupled with economic data suggesting a slower pace of US interest rate cuts appear to have triggered profit-taking among investors.
Berto Tordecilla
This week could mark Bitcoin’s worst performance since September 2023, with potential losses reaching nearly 9%. Ethereum is also facing a challenging week, set to lose over 14% after a recent network upgrade.
Interestingly, the broader cryptocurrency market isn’t seeing a uniform slump. Smaller altcoins like Solana (SOL) and Avalanche (AVAX) have bucked the trend, surging by 19% and 17% respectively this week.
The slowdown in capital inflows into major Bitcoin ETFs reflects a shift in investor sentiment. Last week saw significant inflows exceeding $400 billion on some days. However, the past few days have shown a decline, with inflows into the top 10 Bitcoin ETFs dropping to $178 billion on Monday. This suggests a potential cooling off in investor enthusiasm for Bitcoin.
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