The fall of overall trading volume to $63.63B indicates a slow crypto market, but the rest of the factors also indicate the same. The TV has declined 17% in just a day, and the overall crypto market cap has dropped to $2.3 Trillion. Along with that, the fear and greed index has also shifted away from the bulls.
The result of the market fall is the decline of Bitcoin and Ethereum prices, along with many other top cryptocurrencies. Bitcoin is currency trading at $62,309.95 after a 2% fall, and Ethereum price is trading at $ 2,999.41 after a 2.2% fall. The decline seems to continue for now, bringing the rest of the cryptocurrencies down as well.
Reasons Behind Today’s Crypto Market Decline
The crypto market has been moving sideways for weeks and only showed some short of a surge in the past few days. But that has also been disturbed by today’s fall initiated because of the new regulatory issues in the crypto market. Other than that, a decline in Bitcoin Futures ETF and exchange inflow has brought the investor’s sentiments down, creating bearish situations.
SEC Interfering With the Crypto Market
Robinhood has become the next target of the SEC as the exchange received Wells notice from these US regulators. Robinhood has recently revealed this information in a filing on Monday and said,
On May 4, 2024, RHC received a ‘Wells Notice’ from the Staff of the SEC (the ‘Staff’) stating that the Staff has advised RHC that it made a ‘preliminary determination’ to recommend that the SEC file an enforcement action against RHC alleging violations of Sections 15(a) and 17A of the Securities Exchange Act of 1934, as amended
As a result of this, the exchange has decided to halt any of the cryptocurrencies that have been called or named as securities by the SEC. It is not the first time Robinhood has removed support for cryptocurrencies. Previously, when SEC was involved with Binance and Coinbase, calling Cardano, Solana, and Polygon as securities, Robinhood immediately removed these three cryptos.
Consecutive Bitcoin Future ETF Outlfows
The last week was the fourth continuous week witnessing increased outflows in the crypto market, where the AUM (Assets Under Management) declined by $251 Million. These outflows have continued despite the Hong Kong Bitcoin and Ethereum ETFs launch. These maximum outflows were noticed in the case of Bitcoin, as $284 million got pulled from funds.
This continuity in outflows has brought the popularity of Bitcoin ETF down, directly impacting Bitcoin prices.
In contrast, Ethereum broke its a-week streak of outflows with a record of $30 Million in inflows. So, that makes the total inflow rate US$307 M within just the first week of the launch of these Hong Kong ETFs.
Decade Low Bitcoin Inflow Rate Among Exchange
Apart from the losses in the Bitcoin ETF inflow, the exchange inflow has dropped to the lowest of the decade. Similar to 2015, the Bitcoin exchange inflow value is now only at 20K BTC. Moreover, the long-term holders have halted the distribution to reaccumulate the Bitcoin.
The crypto market might witness a complete downtrend as Bitcoin moves towards an accumulation zone. A few analysts have spoken of the probability of Bitcoin crossing the $50K mark before returning to an all-time high.
Read More 2 Reasons Why XRP Price Might Target $5 By 2024 End
Read More: Top Reasons Why the Crypto Market Is Down | CoinGape
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