The cryptocurrency market witnessed sharp fluctuations, losing more than $100 billion within a few hours, amid increasing outflows from Bitcoin exchange-traded funds, which reached $146 million.
Bitcoin price is under severe pressure:
After a relatively quiet weekend, Bitcoin has trended sharply lower over the past 12 hours, with the coin's price falling to a monthly low of $64,000.
These declines coincided with increased outflows from Bitcoin ETFs, pushing the price sharply lower.
Over the past week, Bitcoin tried to cross the $70,000 barrier several times, but failed.
The latest attempt came after positive CPI data was released on Wednesday, which pushed Bitcoin to rise from below $67,000 to $70,000 in just a few minutes.
But these rises quickly faced strong resistance from bears, especially after the US Federal Reserve announced its intention to lower interest rates, which led to a significant decline in Bitcoin.
By Friday evening, Bitcoin had fallen by $5,000 to $65,000.
Despite relative stability over the weekend and a slight rise to above $66,000, Monday saw a new attempt by the bulls to push the price to $67,000.
However, this attempt also failed, pushing the price to a monthly low of $64,000, with positions worth approximately $500 million liquidated.
This price decline coincided with a new batch of outflows from Bitcoin ETFs, amounting to $145.9 million from all these products.
This led to a decline in Bitcoin's market value to less than $1.3 trillion, while Bitcoin's market dominance increased by 0.7% to 52.1% overnight.
With Bitcoin's increasing dominance and rapid decline, altcoins have seen sharp declines, with most suffering significant losses.
Among the most affected currencies were SHIB, UNI and WIF, which all saw declines of about 10%.
Solana, Dogecoin, Toncoin, Cardano, Avalanche, and Chainlink also suffered sharp declines.
DOT is close to collapsing below $6, while ETH and BNB continue to decline as well.
Despite these broad declines, XRP stood out as a lone exception among major altcoins, with its price rising to over $0.5 amid a general market correction.
In total, the total market cap of cryptocurrencies has fallen below $2.5 trillion over the past day, meaning a loss of around $100 billion since yesterday's peak.
