The crypto market faced a downturn as Bitcoin (BTC) failed to hold its recent rally towards $70,000, dragging major tokens like Dogecoin (DOGE) and XRP down with it. Both DOGE and XRP dropped by 5% and 4%, respectively, as traders took profits following gains from earlier in the week.
U.S.-listed Bitcoin ETFs, which had been on a consistent inflow streak, experienced a net outflow of $80 million, signaling a potential shift in market sentiment or profit-taking. The outflow came after recent strong performance, which saw inflows due to increased institutional interest.
Traders have noted a key resistance point for Bitcoin near $70,000, which has proven difficult to breach. Additionally, stablecoin volume, which typically correlates with liquidity and buying power in the crypto market, has stagnated, signaling a slowdown in the overall market's growth.
Despite this downturn, some analysts still foresee Bitcoin making another attempt to rally toward $80,000 as U.S. elections approach, which may create more volatility in the markets. Memecoins like Bonk (BONK) and smaller tokens such as APE saw even steeper losses, dropping over 7% during this broader market decline.
Bitcoin ETFs saw mixed results during this period, with Ark Invest’s ARKB product leading the outflows at $134 million, while BlackRock’s Bitcoin ETF took in $42 million in fresh capital. Ether ETFs, however, managed to see some inflows, with BlackRock’s Ether ETF recording $11 million on Tuesday.
While market sentiment remains cautious, some traders believe that once Bitcoin clears key resistance levels, it could spark a new wave of momentum, leading to potential gains across the crypto landscape.