Bitcoin price declines amid regulatory concerns and prolonged outflows
Kyiv • UNN
Bitcoin's price declined slightly amid regulatory concerns and prolonged outflows from crypto-investment products, indicating a negative attitude towards cryptocurrencies.
The price of bitcoins fell slightly on Tuesday as attitudes towards cryptocurrencies showed no signs of improvement amid regulatory concerns and as outflows from investment products, particularly exchange-traded funds, continued, reports UNN citing www.investing.com.
Details
The world's largest cryptocurrency fell 0.2% in the past 24 hours to $63,579.4 by 08:30 ET (12:30 GMT).
Sentiment towards cryptocurrency markets was undermined this week by a report showing that less than 10% of the total number of transactions involving stablecoins, a key medium for cryptocurrency transactions, were organic or made by real users.
The report raises questions about how much retail demand there really is for cryptocurrency, given that stablecoin operators, particularly Tether, have achieved consistent increases in market capital.
In addition, trading app Robinhood Markets Inc (NASDAQ:HOOD) stated that it is facing potential regulatory action from the Securities and Exchange Commission regarding cryptocurrency tokens traded on its platform. It was also seen that the SEC is delaying a key decision on the ETF.
Negative factors emerged amidst sustained outflows from cryptoinvestment products, indicating that attitudes towards this area remain largely negative.
Bitcoin-ETF outflows continue for the third week in a row
Data from digital asset manager CoinShares showed on Monday that investment cryptocurrencies saw a third consecutive week of sustained outflows.
Total outflows totaled $435 million, with $423 million in outflows from Bitcoin products.
Outflows from Grayscale's bitcoin-ETF continued to account for the majority of total outflows. But capital inflows into other bitcoin-ETFs also slowed significantly.
The weakening of flows came amid a lack of immediate signals for cryptocurrency markets after the bitcoin halving event passed without much pomp. The token was also largely rangebound after rising to record highs in March.
Among the major altcoins, Ethereum fell 3.4 percent to $3069.52 after the SEC postponed a decision to approve spot ETFs tracking the altcoin in U.S. markets.
The regulator is not expected to make a decision until early July. The Securities and Exchange Commission (SEC) is also investigating whether Ethereum is a security and is expected to reject applications for an Ethereum spot ETF.
Movements in other altcoins were mixed as speculation over lower US interest rates continued to linger.
XRP rose 0.3% and Solana rose 3.8%
Revoult launches cryptocurrency exchange for professional traders
London-based digital bank Revoult has launched its cryptocurrency exchange Revolut X, specifically targeting professional cryptocurrency traders.
Revolut, which has been providing in-app buying and selling of cryptocurrency for years, announced in February its plans to launch a dedicated exchange platform.
Revolut X aims to attract traders by offering lower commissions compared to trading on the Revolut app.
According to Tuesday's announcement, the exchange will not charge a maker fee and only 0.09% to the taker.
While some banks offer cryptocurrency trading to their customers in a variety of ways, Revolut is one of the first to create a dedicated cryptocurrency exchange exclusively for this purpose.
