Bitcoin stabilised on Monday after a turbulent week that saw prices fall to their lowest levels since late 2024 before rebounding toward USD 64,000 over the weekend.
While the cryptocurrency saw some dip-buying, it could continue to face headwinds. In this regard, spot Bitcoin ETFs recorded USD 1.7 billion in net outflows last week, extending an already persistent streak of weekly withdrawals.
Ethereum ETFs face a similar trend. Continued outflows could leave the crypto market at risk of further declines.
Sentiment was also weakened after Strategy’s recent bitcoin sale. While the transaction was small, it challenged the long-standing perception that the company would never sell its holdings. At the same time, speculation that Strategy could resume purchases in the near future has left the market with mixed signals.
Meanwhile, persistent geopolitical tensions in the Middle East continue to fuel a difficult environment for cryptocurrencies with elevated inflation concerns and expectations of more restrictive monetary policies. Major central banks are increasingly expected to raise interest rates, which could weigh on risk assets.
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