The cryptocurrency market is experiencing a slowdown, with the overall transaction volume dropping to $63.63 billion. This decline is accompanied by a 17% decrease in the TVL and a drop in the overall cryptocurrency market value to $2.3 trillion. Another indicator of the market slowdown is the fear and greed index moving away from the bulls.
There are several reasons for this decline in cryptocurrencies. Firstly, the prices of Bitcoin and Ethereum, along with many other cryptocurrencies, have fallen. Bitcoin is now trading at $62,309.95 after a 2% drop, while Ethereum’s price has also decreased by 2.2% and is currently trading at $2,999.41. The cryptocurrency market has been relatively stagnant for weeks, with only a minor increase in recent days. The decline in Bitcoin Futures ETFs and exchange inflows has contributed to bearish conditions, affecting investor sentiment.
Following a Wells notice from US regulators, the exchange Robinhood has become the target of the SEC. As a result, the exchange has decided to halt support for cryptocurrencies that are identified or named as securities by the SEC. This is not the first time Robinhood has removed support for certain cryptocurrencies. Previously, when the SEC classified Cardano, Solana, and Polygon as securities involving Binance and Coinbase, Robinhood immediately removed these three cryptocurrencies.
In terms of ETFs, there has been a continuous increase in exits from the cryptocurrency market over the past week, resulting in a $251 million decrease in AUM. This trend has continued despite the launch of Bitcoin and Ethereum ETFs in Hong Kong. Bitcoin has experienced significant exits, with $284 million withdrawn from the funds. These exits have negatively impacted the popularity of the Bitcoin ETF and have directly affected its prices. On the other hand, Ethereum has broken its week-long exit streak with a record entry of $30 million. Overall, the total entry rate in the first week following the launch of the Hong Kong ETFs amounted to $307 million USD. Additionally, the entry value into the Bitcoin exchange has reached its lowest level in the last decade, currently standing at only 20,000 BTC. Long-term holders have also stopped distributing Bitcoin and are accumulating it again.
It is important for investors to note that the information provided in this article does not constitute investment advice. Cryptocurrencies are highly volatile and carry a significant level of risk, so investors should conduct their own research and exercise caution.
