Crypto:
30351
Bitcoin:
$64.090
% 0.23
BTC Dominance:
%54.1
% 0.13
Market Cap:
$2.34 T
% 0.00
Fear & Greed:
53 / 100
Bitcoin:
$ 64.090
BTC Dominance:
% 54.1
Market Cap:
$2.34 T

Bitcoin Closes Daily Red Candle for First Time After FTX Crash

Bitcoin

Bitcoin experienced its most significant single-day loss since the collapse of FTX as spot BTC ETFs saw unprecedented outflows on Tuesday, according to provisional data from Farside.

On Tuesday, BTC plummeted over 8%, marking its largest single-day percentage decline (UTC) since November 2022. The drop appears to have been sparked by the outflows from ETFs.

The correction in Bitcoin’s price accelerated as U.S.-listed spot ETFs lost favor. The cryptocurrency’s value dipped below $62,000, as reported by TradingView, representing a substantial decline. This drop is reminiscent of November 9, 2022, when prices tumbled over 14% due to the bankruptcy of Sam Bankman Fried’s FTX exchange. The daily performance mentioned here reflects the percentage gain or loss within a day, from midnight UTC to 23:59:59 UTC.

Bitcoin has retraced 15% from its recent peak of over $73,500 reached last week, while the CoinDesk 20 Index has similarly pulled back by 16% during the same period.

Several factors, including outflows from spot ETFs, have contributed to Bitcoin’s recent price slide, according to trader and economist Alex Kruger. Data from Farside indicates a net outflow of $326 million from spot ETFs on Tuesday, the largest on record. Kruger suggests that excessive leverage, Ethereum’s influence on the market downturn, negative BTC ETF inflows, and a speculative frenzy around Solana have all played a role.

Ether (ETH), the second-largest cryptocurrency, surged to around $4,000 following last week’s Dencun upgrade but has since declined to $3,130. One reason for this decline is the diminishing likelihood of the U.S. SEC approving an ether spot ETF by May.

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Additionally, earlier this month, the crypto market appeared overheated, with long traders paying annualized funding rates exceeding 100% to maintain their bullish perpetual futures positions. Such lopsided leverage often precedes corrective price movements.


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