Investors pulled almost $160 million from spot Bitcoin ETFs so far this week, data from SoSoValue showed
Bitcoin dropped on Tuesday, further reversing a weekend recovery as concerns over rising U.S. interest rates and persistent institutional selling kept cryptocurrencies largely on the back foot. An overall hit to risk sentiment stemming from a worldwide tech sell-off also clouded the mood.
Additionally, optimism over Iran-U.S.- peace talks faced a bit of a test amid mixed messaging from both sides.
Bitcoin declined 2.5 per cent to $62,674.70 by 22:14 GMT.
Crypto markets were spooked by hawkish signals from the U.S. central bank last week, after a bulk of policymakers leaned towards raising interest rates this year. Higher rates bode poorly for speculative, non-yielding assets like crypto.
Institutional investors continued to sell spot exchange-traded funds this week after six straight weeks of heavy outflows in the sector.
Investors pulled almost $160 million from spot Bitcoin ETFs so far this week, data from SoSoValue showed.
While the pace of outflows has slowed in recent weeks, it still indicated that demand for crypto and crypto products remained highly fragile.
Bitcoin found little relief on the retail front. The Coinbase premium index, which compares Bitcoin’s price on Coinbase – the largest U.S. exchange – to the world premium, showed Bitcoin continuing to trade at a significant discount.
The trend suggested U.S. retail demand for the world’s largest crypto was highly subdued after a bruising sell-off this year.
Meanwhile, cryptocurrencies were also under pressure after an international sell-off gripped technology stocks. U.S. stock market plunged on Tuesday, with the tech-heavy Nasdaq Composite tumbling more than 2 per cent.
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