Bitcoin near $67,000: Stronger dollar, Fed tightening fears and ETF outflows weigh on crypto markets

Bitcoin's price hovers around $67,000 as economic concerns and outflows from Bitcoin ETFs have dampened crypto market sentiment. Over the past day, Bitcoin has dipped 1%, while Ethereum has declined by 0.3%. Among the leading altcoins, BNB, XRP, Solana, Hyperliquid, Dogecoin, and Cardano have dropped up to 3.6%, with Tron showing a slight gain of 0.5%.

Riya Sehgal, a research analyst at Delta Exchange, notes that the market's decline has been propelled by economic uncertainty, institutional outflows, and heightened liquidations. Over 24 hours, 144,015 traders were liquidated, amassing a total of $907.94 million in liquidations.

The near-term outlook for Bitcoin remains pessimistic, contingent upon heightened buying volume and a sustained push above current resistance levels, adds Sehgal. The global crypto market capitalization has declined by 2.1% to $2.36 trillion.

In the past week, Bitcoin witnessed an 11.3% drop, while Ethereum faced a 15.2% decrease. Leading altcoins, including BNB, XRP, Solana, Dogecoin, Tron, Hyperliquid, and Cardano, experienced corrections of up to 16%. Nischal Shetty, the founder of WazirX, mentioned that the week commenced with a boost from strengthening global equities, falling energy prices, and a weakening US dollar. However, unexpected inflation, soaring bond yields, and persistent ETF withdrawals began to tighten financial conditions.

"Institutional activity remains the primary driver of pressure. Over the four reported sessions, US spot Bitcoin ETFs saw combined net outflows of around $1.01 billion, with Ethereum ETFs losing roughly $424 million," Shetty elaborates. The fact that Bitcoin and Ethereum are hovering near key support levels indicates that spot demand continues to offset a portion of the institutional selling. For a comprehensive recovery, improved macroeconomic liquidity and more regular ETF participation are essential, asserts Shetty.