Bitcoin’s value fell below $61,000 on Wednesday morning, dropping 8% in the past 24 hours after reaching its weekly peak. The decline is the biggest slide in a day since FTX’s collapse in November 2022. Other cryptocurrencies also suffered a sharp drop, wiping out $400 billion from the crypto market since Bitcoin’s peak, according to crypto tracking website CoinMarketCap.
Over the past week, Bitcoin’s value has decreased by more than 13% after reaching its all-time high of $73,737 on March 14, 2024. Ether, the second-largest cryptocurrency by market cap, also experienced a decrease in value of nearly 17% over the past seven days. Additionally, Cardano and Dogecoin both saw a decrease in value of 20% and 22%, respectively, over the past week.
Impact of Spot Bitcoin ETFs outflows
In the past few days, the demand for spot Bitcoin ETFs has decreased sharply. Grayscale’s ETF (GBTC), for example, experienced a record outflow of $643 million on Monday. GBTC has been criticized for its high expense ratio, while other spot Bitcoin ETFs like Blackrock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin ETF have zero fees. Additionally, spot ETFs saw a net outflow of $326 million yesterday — the largest on record.
All eyes on The Fed
Federal Reserve Chair Jerome Powell will announce whether interest rates will be adjusted and share the Federal Open Markets Committee’s (FOMC) outlook on the economy at the conclusion of today’s meeting. Perhaps the upcoming FOMC meeting could bring some excitement to the cryptocurrency market.