Published on juni 18, 2024, 5:28 am
Image source: Fox News
```json [ { "TLDR": "Recent drop in altcoins may be related to Bitcoin ETF outflows, causing a 3.5% decrease in total crypto market capitalization. Altcoins like SHIB and AVAX faced significant losses, while XRP showed a slight increase. BTC and ETH also dropped. Analysts attribute the market downturn to reduced interest in spot Bitcoin ETFs. Despite concerns about post-halving profitability, mining stocks are showing signs of recovery with ETFs like WGMI rising by 54%. Strategic investor decisions could yield gains amidst market fluctuations." } ] ```
Crypto market analysts have suggested that the recent stumble in altcoins could be linked to a series of spot Bitcoin ETF outflows. The cryptocurrency market experienced a downturn on Monday, witnessing some altcoins dropping by more than 10%. Despite this, industry experts find it challenging to pinpoint a definitive cause for this decline.
The total market capitalization of cryptocurrencies has decreased to $2.46 trillion, marking a 3.5% drop in the last 24 hours. Notably, Shiba Inu (SHIB) and Avalanche (AVAX) suffered significant losses among the top 20 altcoins by market cap on June 17, plunging by 12.7% and 10.6%, respectively, as per CoinGecko data. Other prominent cryptocurrencies like Uniswap (UNI), Dogecoin (DOGE), and Solana (SOL) also experienced double-digit declines. Interestingly, Ripple’s XRP was one of the few exceptions, showing a marginal increase of 0.1%.
Bitcoin (BTC) and Ether (ETH) saw respective drops of 1.3% and 4.4% over the previous day. Henrik Anderrson, the chief investment officer at asset manager Apollo Crypto, mentioned the reduced interest in spot Bitcoin exchange-traded funds as a potential influencing factor behind the market downturn.
Moreover, recent reports have highlighted that altcoin crashes may be correlated with the decrease in spot Bitcoin ETF flows over the past week. Market dynamics indicate that while Bitcoin mining stocks have been performing well lately, there was concern about profitability following April’s halving event.
Analysts emphasize that despite initial apprehensions surrounding post-halving profitability levels for mining stocks, confidence seems to be returning to the sector gradually. For instance, the Valkyrie Bitcoin Miners exchange-traded fund (WGMI) has surged by approximately 54% since the halving event—a positive indicator signaling renewed market optimism within the mining industry.
In conclusion, while uncertainties persist within specific segments of the cryptocurrency market such as altcoins and mining stocks, strategic decisions by investors could capitalize on these fluctuations towards potential gains in this evolving financial landscape.
Original article posted by Fox News
