As the crypto market correction continues on Wednesday Bitcoin (BTC) dipped to a two-week low. BTC price has been steadily declining since reaching a record high close to $73,798 on March 14. However, this decline has raised concerns about whether Bitcoin reached a temporary peak or not. The biggest crypto price is now down by over 13% in the last 7 days.
Bitcoin ETF craze cooling down?
The ongoing decline in Bitcoin price suggests a diminishing demand for crypto focused exchange-traded funds (ETFs). It is lining up with the uncertainties emerging regarding the Federal Reserve’s decision to lower interest rates.
Bitcoin ETFs, launched on January 11, are recording a cooling demand despite witnessing a net inflow of $11.7 billion till now. Data suggests that these ETFs collectively registered their largest outflow on Tuesday. It is expected that the surge was backed by exits from the Grayscale Bitcoin Trust (GBTC). However, reduced subscription offerings from entities like Fidelity Investments and BlackRock Inc. might also be the reason behind it.
With the broader market correction, BTC price dipped by around 3% in the last 24 hours, while, it is still up by 20% over the last 30 days. Bitcoin price dropped to the $60,000 price level on Wednesday. However, after a slight recovery, BTC is now trading at an average price of $63,049, at the press time. Its 24 hour trading volume is up by 19% to stand at $71.5 billion.
It is important to note that the world’s largest crypto’s decline is majorly linked to skepticism building around the Federal Reserve’s stance on inflation. Meanwhile, it is also tagged with the potential adjustments to interest rate cuts.
More drops to come in?
Market analysts suggest that investors who entered the market above $60,000 are anticipating continuous inflows into the new Bitcoin ETFs. However, those investors are now facing a test of commitment.
The global crypto market recorded a drop of more than 2% over the last day to stand at $2.36 trillion. The market has seen approx $460 billion wiped out since last week. Top cryptos like Ethereum (ETH), BNB, Cardano and Dogecoin recorded a heavy decline in the last 7 days.
Data provided by Coinglass shows that more than 143k traders were liquidated in the last 24 hours. The total liquidations recorded by the tracker stand at around $566 million. The largest single liquidation order happened on the crypto exchange OKX of BTC-USDT-SWAP valued at $12.25 million.
