Bitcoin crashes while BTC ETF inflows come to an end

Cryptocurrency prices are crashing strongly in the past hours. Bitcoin (BTC) has fallen by almost 5% in the last 24 hours and many altcoins have followed. The bearish price action follows further bearish news from the BTC Spot Exchange Traded Funds (ETFs) market. The popular funds saw a sudden halt of inflows after weeks of consecutive positive capital flows coming into the ETFs, as new data shows. Investors remain uncertain of the interest rate policy in America impacting investments.  

The BTC price has fallen back under the $67.000 and many other altcoins have followed. Among the hardest hit coins are many memecoins such as Floki (FLOKI) and Dogwifhat (WIF) but also large smart contract platforms such as Solana (SOL). The coins fell 14.1%, 13,9% and 8,8% respectively. As a result of the crypt market crash the total market cap has fallen almost by $140 billion in the last 24 hours. 

$65 million left Bitcoin funds

The Bitcoin ETFs started the month with large capital inflows. This resulted in the 11 BTC funds managing more than $60 billion in their first 6 months of existence. However on monday a significant amount of money left the exchange, with $40 million leaving the Grayscale (GBTC) fund. In total the net outflow of money consisted of almost $65 million, resulting in a significant sell-off of BTC on the market. Only the BlackRock BTC fund (IBIT) and the Bitwise fund (BITB) saw net positive inflows, although minor. 

As long as BTC ETF funds experience significant outflows it is likely that the Bitcoin price will continue to crash. Important key levels for investors are the $65.000 resistance level. In case the BTC price does not find support at this level a further price correction of $62.000 is becoming likely. 

Uncertainty American economy

A reason for the sudden change in investor sentiment is likely related to the American economy. Global markets are anticipating the interest rate decision of the Federal Reserve (FED) in the coming weeks. The interest rates are kept high to battle the ongoing inflation in the United States (US). Keeping these rates high is expected to negatively impact the BTC price development. As new data shows that inflation in the US will persist it is less likely for the interest rates to fall putting further pressure on the Bitcoin price. 


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