Inflows into BTC ETF Did Not Stop Bitcoin Price Decline

Despite yesterday's inflow of over $500 million into spot BTC-ETFs — a monthly high — the price of Bitcoin continues to decline. Yesterday, the main cryptocurrency was rejected at the $83,000 level, and since then, it has fallen by nearly $2,000. Most altcoins followed suit: BTW stands out the most, losing over 30%, as well as RAIN and NEAR.

Bitcoin reacted sharply to the CPI and PPI data last week — both indicators confirmed persistent inflation in the US. Both reports came out above expectations, and BTC plummeted from $84,000 to a monthly low below $80,000. By the end of the week, it recovered above $82,000, but over the weekend, it lost ground and briefly fell below $81,000 on Saturday evening, although it quickly bounced back.

On Sunday, there was widespread discussion on social media about expectations of a 'Black Monday,' but in practice, it was limited to a drop to $80,600 on Sunday evening, after which Bitcoin rose to $83,000 on Monday. A significant part of this rise may have been driven by ETF inflows: funds attracted over $526 million — the best daily figure since September 22. However, it failed to hold the level: since then, the cryptocurrency has lost nearly $2,000 and is struggling to stay above $81,000. The market capitalization has again decreased to $1.630 trillion, and the dominance of altcoins, according to CMC, is barely above 60%.

BTW continues its sharp fluctuations, this time in the opposite direction: after several days of gains, it erased all gains, plummeting by 33.5% in a day to $1.50. RAIN is another major loser: falling by more than 10% to $0.0082. NEAR decreased by 7% and is struggling to hold at the $4.7 level.

ETH fell by more than 2% and settled below the key support of $2,400. XRP, after a daily decline of 1.6%, is again below $1.30. SOL, ZEC, HYPE, DOGE, LINK, and ADA are also in the red, while XMR rose above $610 after a 3.6% increase for the day. The total cryptocurrency market capitalization decreased by more than 1.3% for the day and returned to $2.720 trillion, according to CMC.