Cryptocurrency ETFs on the verge of collapse: losses of over $ 1.1 billion and warnings of a...

Cryptocurrency ETFs on the verge of collapse: losses of over $ 1.1 billion and warnings of a “mini” bear market

Cryptocurrency markets are facing a serious crisis phase. US Bitcoin ETFs have experienced a third consecutive week in the red, while a record $ 1.1 billion has flowed from the market. This fourth largest outflow in history raises the question of whether a “mini” bear trend is approaching that could affect the further direction of the market.

The price of Bitcoin is currently at a “pivotal point” as further movement depends on macroeconomic conditions and key technical levels. It has fallen by almost 10% over the past week and is currently trading around $ 95,740. This development confirms the weakening interest of institutional investors, who traditionally form one of the main drivers of demand.

Data from Farside Investors shows that the outflow from ETFs is associated with a decrease in market momentum and a lack of new impulses for growth. The Matrixport platform has labeled the current trend as the beginning of a “mini” bear market that could signal a change in long-term sentiment.

“Given declining ETF flows, investor withdrawals from funds, and adverse macroeconomic conditions, the path forward is highly uncertain,” analysts warn. The Federal Reserve’s policy developments will also be important, as their decisions could fundamentally affect the future direction of the market.

While Bitcoin is suffering, some altcoins and ETFs continue to show resilience. Solana ETFs, for example, have seen 17 consecutive days of positive inflows, and attracted another $12 million last week. In contrast, Ether ETFs have seen $177 million in outflows, marking their fourth consecutive day of decline, with Ether’s price down 11% over the past week.

Overall, the situation points to uncertainty and the need to monitor not only technical levels but also macroeconomic developments, which may determine the future fate of cryptocurrency ETFs and the market as a whole. Investors should be cautious as the current trend suggests a possible transition into a new, “mini” bear market.

*This is not an investment recommendation.

The Coingarage Team