Hassan Maishera
TL;DR
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Bitcoin is having a poor start to the week, losing more than 3% of its value in the last 24 hours.
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The poor performance comes as U.S. spot bitcoin ETFs reported a total daily outflow of $438 million on Monday.
BTC Dips Below $93k
Following weeks of rallying, Bitcoin seems to be experiencing a price correction after it lost more than 3% of its value on Monday. Bitcoin, the leading cryptocurrency by market cap, briefly dropped below $93k on Monday as bears temporarily took control of the market.
BTC slipped to the $92,770 region on Monday before returning to trade above $94k. At press time, BTC is trading at $94,701 per coin. The bearish performance comes as U.S. spot Bitcoin ETFs recorded a total negative flow of nearly $438.4 million on Monday. Yesterday’s outflow ended a five-day streak of net inflows that had brought in almost $3.4 billion.
According to SoSoValue, Bitwise's BITB led the way with $280 million in outflows. Grayscale’s GBTC closely followed it with $158.2 million in outflows. Fidelity’s FBTC came in third with $134.7 million in outflows, while Ark and 21Shares’ ARKB logged outflows of $110.9 million. Spot bitcoin funds from Invesco, Valkyrie, and VanEck also reported negative flows on Monday.
However, BlackRock's IBIT, the largest spot bitcoin ETF with $31.6 billion in cumulative inflows, experienced net inflows of $267.8 million on Monday. Grayscale's Mini Bitcoin Trust also recorded an inflow of $420,460.
While commenting on Bitcoin’s pullback, Ruslan Lienkha, chief of markets, YouHodler, told Cryptowisser that the performance could be driven by profit-taking from investors. He added that,
"Over the past week, market activity has concentrated primarily on second-tier major cryptocurrencies such as XRP and SOL, while Bitcoin has temporarily paused- this could mark the onset of an alt-season. Meanwhile, Bitcoin is undergoing a corrective phase, likely driven by profit-taking, which may result in the price consolidating before a potential move toward the key psychological level of $100,000.
Additionally, the record inflow of stablecoin capital into Binance indicates that we are likely in the midst of, but not near, the end of the current bull market. This trend suggests sustained investor interest and ongoing momentum in the crypto market.”
With Bitcoin’s rally slowing down, Ruslan suggests that Ether could embark on its rally. YouHolder’s chief of markets added that,
“The notable decline in correlation between BTC and ETH presents a potential opportunity for traders and investors who may have missed the recent Bitcoin rally. As the second-largest cryptocurrency, Ethereum remains a crucial player in the digital asset space. Should an "alt-season" emerge, ETH is well-positioned to narrow its gap with Bitcoin, offering significant potential for growth."
While BTC is in the red, Ether is up 1% in the last 24 hours and currently trades at $3,426 per coin.
