While major cryptocurrencies have experienced significant declines, sustained outflows and profit-taking from US-listed Bitcoin exchange-traded funds (ETFs) have put downward pressure on the market.
Dogecoin and Solana Lead Crypto Majors' Fall as Bitcoin Drops Below $66K
Bitcoin (BTC) reversed all of Monday's gains, falling to around $64,569, while Ethereum (ETH) fell to $3,355, erasing the previous week's gains.
BTC is trading near its 50-day moving average at $66,000, testing the medium-term uptrend. Meanwhile, BTC ETFs continued last week's poor performance, recording a net outflow of $145 million.
According to CoinGecko data, Dogecoin (DOGE) and Solana's SOL led losses among major tokens, with both falling as much as 9% in the last 24 hours. While Ton Network's TON dropped 5%, BNB Chain's BNB managed to limit losses to just 1.5%.
“Other factors didn't help,” said Neil Roarty, an analyst at investing platform Stocklytics. “Political uncertainty triggered by Emmanuel Macron's surprise decision to call early elections in France further strengthened the dollar as traders exited the euro.”
“A strong dollar tends to put downward pressure on Bitcoin,” he added, noting that significantly lower interest rates and a weaker dollar would be required to push BTC closer to the $70,000 mark.
Elsewhere, FxPro senior market analyst Alex Kuptsikevich warned of an overall bearish outlook, pointing out that positive Ethereum ETF developments have done little to revive ETH prices.
“Ethereum managed to gain over 6% after briefly falling below its 50-day MA on Friday, on optimistic expectations for the ETF.
However, the loss of approximately 1.5% since the start of the day on Monday warrants caution regarding the short-term performance of altcoins,” he said.
*This is not investment advice.
