Bitcoin’s downward trajectory continued as it extended losses following one of the worst weeks for the cryptocurrency market in 2024. This decline reflects waning demand for Bitcoin exchange-traded funds (ETFs) and ongoing uncertainty surrounding monetary policy.
Over the past week, the largest 100 digital assets saw a significant decline of approximately 5%, marking the steepest weekly drop since April, according to data compiled by Bloomberg. As of 9 a.m. Monday in London, Bitcoin traded at $62,440, representing a more than one-month low and a roughly 2% decrease.
The crypto market’s struggles come amid a six-day streak of outflows from Bitcoin-dedicated US ETFs. This trend highlights broader market apprehensions, particularly doubts regarding the Federal Reserve’s ability to reduce interest rates swiftly from their current two-decade high. Some analysts view the downturn in digital assets as a potential indicator of declining risk appetite in the broader financial landscape.
“The current crypto market dynamic is characterized by low volatility, soft volumes, and orderbooks getting unbalanced when prices start to move to the edges of their range,” noted David Lawant, head of research at FalconX, in a recent report.
Specific cryptocurrencies have experienced notable declines. Ether and Solana, for instance, are experiencing their longest streaks of weekly declines since last year and 2022, respectively. This downturn persists even as fund companies gear up to launch the first US ETFs directly investing in Ether, the second-ranked crypto asset. Solana, once a favorite among digital-asset hedge funds, is also facing significant pressure.
Despite hitting a record high of $73,798 in March, Bitcoin is underperforming compared to traditional investments such as stocks, bonds, and gold this quarter. Analysts are closely watching the 200-day moving average, currently around $57,500, as a potential support level for Bitcoin’s price, according to Tony Sycamore, Market Analyst at IG Australia Pty.
“A bearish mood seems to be setting in,” commented Caroline Mauron, co-founder of digital-asset derivatives liquidity provider Orbit Markets. “The market is finding it hard to digest any large sell orders.”
As the cryptocurrency market navigates these turbulent waters, investors and analysts alike are keeping a close eye on key support levels and broader market trends, hoping for signs of stabilization and renewed demand.
