Top Reasons Why the Crypto Market Is Down
The fall of overall trading volume to $63.63B indicates a slow crypto market, but the rest of the factors also indicate the same. The TV has declined 17% in just a day, and the overall crypto market cap has dropped to $2.3 Trillion. Along with that, the fear and greed index has also shifted away from the bulls.
The result of the market fall is the decline of Bitcoin and Ethereum prices, along with many other top cryptocurrencies. Bitcoin is currency trading at $62,309.95 after a 2% fall, and Ethereum price is trading at $ 2,999.41 after a 2.2% fall. The decline seems to continue for now, bringing the rest of the cryptocurrencies down as well.
Reasons Behind Today’s Crypto Market Decline
The crypto market has been moving sideways for weeks and only showed some short of a surge in the past few days. But that has also been disturbed by today’s fall initiated because of the new regulatory issues in the crypto market. Other than that, a decline in Bitcoin Futures ETF and exchange inflow has brought the investor’s sentiments down, creating bearish situations.
SEC Interfering With the Crypto Market
Robinhood has become the next target of the SEC as the exchange received Wells notice from these US regulators. Robinhood has recently revealed this information in a filing on Monday and said,
On May 4, 2024, RHC received a ‘Wells Notice’ from the Staff of the SEC (the ‘Staff’) stating that the Staff has advised RHC that it made a ‘preliminary determination’ to recommend that the SEC file an enforcement action against RHC alleging violations of Sections 15(a) and 17A of the Securities Exchange Act of 1934, as amended
As a result of this, the exchange has decided to halt any of the cryptocurrencies that have been called or named as securities by the SEC. It is not the first time Robinhood has removed support for cryptocurrencies. Previously, when SEC was involved with Binance and Coinbase, calling Cardano, Solana, and Polygon as securities, Robinhood immediately removed these three cryptos.
Consecutive Bitcoin Future ETF Outlfows
The last week was the fourth continuous week witnessing increased outflows in the crypto market, where the AUM (Assets Under Management) declined by $251 Million. These outflows have continued despite the Hong Kong Bitcoin and Ethereum ETFs launch. These maximum outflows were noticed in the case of Bitcoin, as $284 million got pulled from funds.
This continuity in outflows has brought the popularity of Bitcoin ETF down, directly impacting Bitcoin prices.
In contrast, Ethereum broke its a-week streak of outflows with a record of $30 Million in inflows. So, that makes the total inflow rate US$307 M within just the first week of the launch of these Hong Kong ETFs.
Decade Low Bitcoin Inflow Rate Among Exchange
Apart from the losses in the Bitcoin ETF inflow, the exchange inflow has dropped to the lowest of the decade. Similar to 2015, the Bitcoin exchange inflow value is now only at 20K BTC. Moreover, the long-term holders have halted the distribution to reaccumulate the Bitcoin.
The number of people wanting to sell BTC has been decreasing since February 2018. The MA-365D Exchange Inflow has dropped from 90K to 36K.
The current trend for Bitcoin Exchange Inflow is 20K BTC, a similar situation occurred in 2015.#deficit pic.twitter.com/YGNUOPBWqj
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) May 6, 2024
The crypto market might witness a complete downtrend as Bitcoin moves towards an accumulation zone. A few analysts have spoken of the probability of Bitcoin crossing the $50K mark before returning to an all-time high.
Read More 2 Reasons Why XRP Price Might Target $5 By 2024 End
- SEC Chair Paul Atkins Says Crypto Is Top Priority At SEC CFTC Roundtable
- Legal Expert Breaks Down XRP’s Appeal as Ripple SWIFT Debate Heats Up
- Crypto Stakeholders Push Back as Banks Seek Yield Ban Provision in CLARITY Act
- Crypto ETFs Approval Faces Uncertainty as Government Shutdown Looms, Bloomberg Analyst Says
- Fed’s Hammack Backs Restrictive Policy Over Rate Cuts Amid Inflation Concerns
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
- Bitcoin Price Set to Rebound Ahead of US Government Shutdown, NFP Data
- XRP Price Prediction: How XRP Could React After October 2025 SEC ETF Decisions
- Aster Price Prediction as US President Adds $110M Worth of Tokens to His Portfolio
- Pepe Coin Price Bounce Likely as Support Zone Aligns With Rising Social Activity
- Solana Price Set for Recovery Amid Wyckoff Accumulation and Canary Capital ETF Filing
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
