The cryptocurrency market faces another decrease, as the total maximum market decreased by 2 %, and wipes $ 40 billion during the past 24 hours. This decline kept the main cryptocurrencies like Bitcoin and Ethereum struggling to gain momentum. Meanwhile, the Crypto Fead & Greed index stands at 40 reflecting a neutral stance in the market. So, what causes this last decline?
Bitcoin and ethereum etfs see huge external flows
One of the main reasons behind the decline in the encryption market is the continuous flow of Bitcoin and ethereum etfs. In the past two weeks, the investment funds traded in the United States in the United States have seen their entirety The net outflow of $ 1.14 billionOn the occasion of the largest withdrawal since its launch.
Last week alone, Bitcoin $ 571 million investment funds in external flows, mainly due to concerns about commercial tariffs, inflation and potential changes in monetary policy. Fidelity led external flows, followed by gray and increased uncertainty in the market.
Ethereum etfs also faced great clouds. Over the past two weeks, at ethereum etf eutflows It reached a total of 85.3 million dollarsWith gray accounting of the largest external flow. This selling pressure affected the price of ETHEREUM.
The main breakthroughs add the sale pressure
Another major reason for market contraction is the last series of the main infiltrators for encryption. BYBIT, which led to a loss of $ 1.4 billion in ETHEREUM, caused a major sale in the market.
While Ben Zhou CEO, Ben Zhou, confirmed the recovery of $ 742 million of stolen money, the investor’s confidence is still shaking.
In addition to concerns, another Infini Neobank penetrated, which led to a theft of $ 49.5 million in Usdc.
Will February end in red?
Historically, February was a strong month for Bitcoin, as most years have achieved positive returns with the exception of 2014 and 2020. However, this time, Bitcoin is already. 6.41 % decrease For this month.
Analysts believe that BTC needs to close more than $ 102,500 to convert February into a green month. If Bitcoin fails to reach this level, this may only determine the third month of February in its history.
Bitcoin price movements and ethereum
The price of Bitcoin has been moving sideways over the past few weeks, fluctuating between 93,000 dollars and 100,000 dollars. If you fail to obtain support for $ 93,000, it may decrease to $ 90,000.
Meanwhile, Ethereum is also struggling to maintain its momentum, which is currently about $ 2,706, which reflects a 2.2 % decrease. Historically, Ethereum’s performance was good in the first quarter of each year, with great gains in the first quarter of 2017 and Q1 2021.
Despite its 17 % decrease, some experts believe that Ethereum may still see strong growth by the end of the quarter. However, competition from platforms like Solana and Cardano is still a challenge.
