Bitcoin’s price dipped below $65,000 for the second time in three days, amid a wave of substantial outflows from spot Bitcoin exchange-traded funds (ETFs) last week. Bitcoin’s price fell from an opening of $66,629 to an intra-day low of $65,050 on June 17. At the time of writing, Bitcoin was trading at $64,800, marking a 2.56% drop over the past 24 hours.
This recent price correction is part of a broader downtrend that saw Bitcoin hitting a low of $60,005 on June 14, closely linked to negative ETF flows. CoinShares’ latest report highlighted significant outflows from digital asset investment products, totaling $600 million last week. This marks the end of a five-week cycle of inflows into crypto investment products. The report attributed the recent price drop to mixed macroeconomic data from the U.S. and the FOMC’s hawkish tone, which slashed the expected Fed rate cuts for 2024 from four to just one.
The negative sentiment was particularly pronounced for Bitcoin, which saw outflows amounting to $621 million. In contrast, short-Bitcoin products saw minor inflows of $1.8 million. Data from Farside Investors supported these findings, showing net outflows of $580 million from spot Bitcoin ETFs for the week ending June 14.
These high outflows from Bitcoin investment products indicate waning investor interest, putting downward pressure on Bitcoin’s price. Large-cap altcoins have outperformed Bitcoin over the past week, led by XRP and Toncoin, which posted gains of 4% and 11%, respectively, according to CoinMarketCap data. Despite Bitcoin’s 5.6% drop over the same period, it still outperformed several altcoins, including Solana and BNB Chain.