The cryptocurrency market took a hit on June 11, with Bitcoin dropping below $67,000 after reaching above $70,000 recently. This decline comes amidst anticipation of U.S. inflation data and the Federal Open Market Committee (FOMC) meeting. U.S. spot Bitcoin exchange-traded funds saw net outflows of $65 million on Monday, breaking a 19-day streak of inflows. Grayscale’s GBTC ETF led the pack with $40 million in outflows, making it the worst-performing Bitcoin ETF with a total of $18 billion in outflows since January.
On Monday, Invesco and Galaxy Digital’s BTCO ETF, as well as Valkyrie Digital Assets’ BRRR ETF, experienced outflows of $20.5 million and $15.8 million, respectively. BlackRock’s IBIT saw net inflows of $6 million, while Bitwise’s BITB saw $8 million in inflows. Despite these outflows, the 11 U.S. spot Bitcoin ETFs have seen cumulative net inflows of nearly $16 billion since their inception in January. The market saw Bitcoin’s price nosedive by 4.3% to $66,207, along with losses in major alternative cryptocurrencies such as Ether, Solana, Ripple, and Dogecoin.
Asset managers are currently awaiting feedback from the Securities and Exchange Commission (SEC) on their S-1 registration statements, after receiving approval for 19b-4 filings. The SEC needs to approve the S-1 forms before spot Ether funds can be officially listed for trading. SEC chairman Gary Gensler hinted on June 6 that the approval process will depend on how quickly issuers respond to comments from the agency. This regulatory uncertainty adds to the challenges facing the cryptocurrency market amidst the recent price decline and outflows from Bitcoin ETFs.
The decline in Bitcoin’s price and the outflows from Bitcoin ETFs coincide with the upcoming release of the U.S. Bureau of Labor Statistics’s May figures for the Consumer Price Index (CPI) and the FOMC meeting. These events are expected to have implications for the cryptocurrency market and investor sentiment. The market’s reaction to these economic indicators and regulatory developments will likely influence the future direction of Bitcoin and other cryptocurrencies. Despite the current challenges, some investors remain optimistic about the long-term potential of cryptocurrencies as an asset class and a store of value.
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