Bitcoin Hits One-Month Low Amid Broad Crypto Market Sell-Off


Stocks and bonds had outperformed bitcoin, which marks a reversal from the previous three months ending in March when digital assets surpassed traditional market returns.

Bitcoin reached a one-month low due to outflows from digital-asset investment products and concerns over prolonged high US borrowing costs, which weakened the crypto market.

The largest digital asset fell by 2.7% on Tuesday, June 18, hitting a level last seen in mid-May. It later cut some losses, trading at $65,740 as of 1:20 pm in Singapore. Smaller tokens, including Ether, Solana, and Dogecoin, also experienced declines. 

Over $600M Outflow Recorded 

According to data from CoinShares International, approximately $600 million was withdrawn from digital asset products last week, the largest outflow since March. Persistent inflation has prompted traders to reduce their expectations for Federal Reserve interest rate cuts this year, creating a challenging environment for speculative investments like crypto.   

Trading volumes for the week amounted to $11 billion, falling short of this year’s weekly average of $22 billion but marking a substantial increase from the $2 billion per week recorded last year.  

The outflows focused entirely on bitcoin, with withdrawals totaling $621 million. The bearish sentiment also prompted inflows of $1.8 million.  

During this quarter, stocks and bonds have outperformed bitcoin, which marks a reversal from the previous three months ending in March, when digital assets significantly surpassed traditional market returns.

Caroline Bowler, CEO of BTC Markets, commented, “Crypto is becoming increasingly exposed to macro triggers.” She also expressed optimism about its long-term outlook and prospects.   

New Listing Decline  

There has been a noticeable decrease in interest or demand in the crypto market, which has affected new coins like the ZK token. After its Monday listing, the token dropped by a third, joining other highly anticipated launches in sharp sell-offs.   

A recent local report in South Korea indicated that upcoming regulations, expected next month, might compel exchanges to reduce the variety of tokens accessible to investors. As a significant hub for smaller digital assets, known as altcoins, the nation’s potential regulatory changes have unsettled some traders. 

Since the beginning of 2023, bitcoin’s price has quadrupled, reaching a peak of $73,798 in March, driven by the growing demand for specialized US exchange-traded funds (ETFs). However, the recent cooling of the rally coincides with a slowdown in ETF inflows.