Bitcoin Sinks Under $94,000 as ETPs Record First Outflows in 19 Weeks

The cryptocurrency market posted losses on Tuesday as exchange-traded products (ETPs) recorded their first net outflows in 19 weeks, driven by rising inflation concerns.

Bitcoin (BTC) dropped nearly 2% in the past 24 hours, trading at $93,600, while Ethereum (ETH) fell 3% to $2,600. XRP recorded a sharper decline of 5.2%, and Solana (SOL) experienced a 7.4% loss, dropping to $164, according to CoinGecko.

The cryptocurrency market plunged nearly 4% over the past day, bringing its total market capitalization to $3.2 trillion. In this time frame, 140,058 traders were liquidated for a total of $332 million. BTC accounted for $88 million in liquidations, while ETH followed with $58 million, according to CoinGlass data.

Analysts link the market’s downturn to broader macroeconomic concerns, which signal persistent inflation. The downturn also coincides with the first net outflow from digital asset exchange-traded products (ETPs) in 19 weeks.

“The crypto market’s 3% drop today isn’t too surprising—mostly appears to be macro-driven,” said Sid Powell, CEO at Maple Finance. “The recent inflation report shows that it still lingers, making it less likely that rate cuts will happen in the short term.”

However, Powell added that this kind of sentiment can reverse pretty quickly if the macro picture improves.

Crypto Fund Outflows

According to the latest CoinShares Digital Asset Fund Flows Weekly Report, digital asset investment products experienced significant outflows last week, totaling $415 million. This marked the end of a 19-week inflow streak that had accumulated $29.4 billion.

“ETFs snapped a 19-week streak of inflows with the first week of net outflows as investors have been looking to pare back exposure, which led to sell pressure,” Powell said. CoinShares attributed these outflows to recent hawkish signals from Federal Reserve Chair Jerome Powell and higher-than-expected US inflation figures.

The report noted that BTC was notably impacted, with outflows of $430 million, reflecting its sensitivity to interest rate expectations. Interestingly, short-Bitcoin products also recorded outflows of $9.6 million.

In contrast, Solana led inflows with $8.9 million, followed by XRP and Sui with $8.5 million and $6 million respectively. Blockchain equities attracted $20.8 million in inflows, bringing their year-to-date total to $220 million.