Investing.com– The price of bitcoin fell on Tuesday as sentiment toward cryptocurrencies showed few signs of improving amid regulatory issues and because capital outflows from investment products, specifically exchange-traded funds, remained in play.
It fell 1% in the last 24 hours to $63,558.2 at 01:52 CET (05:52 GMT).
Sentiment towards cryptocurrency markets was hit this week by a report showing that less than 10% of total stablecoin transactions, which are a key vehicle for transacting cryptocurrencies, were organic or from real users.
The report raised questions about how much retail demand there actually was for cryptocurrencies, as stablecoin traders, specifically, saw steady increases in market capital.
Also, commercial application Robinhood Markets Inc (NASDAQ đŸ™‚ said it was facing possible regulatory action by the Securities and Exchange Commission over crypto tokens traded on its platform. The SEC was also seen postponing a key decision on ETFs.
The negative factors came amid sustained outflows of cryptocurrency investment products, indicating that sentiment towards the space remains largely negative.
Bitcoin ETF outflows extend to third consecutive week
Data from digital asset manager CoinShares on Monday showed that cryptocurrency investment products experienced a third consecutive week of sustained capital outflows.
Total outflows amounted to $435 million, with Bitcoin products recording outflows of $423 million.
Outflows from the Grayscale Bitcoin ETF still accounted for the majority of total outflows. But a substantial slowdown in capital inflows to other Bitcoin ETFs was also seen.
The weakening of flows came amid a dearth of immediate signals for crypto markets, after the Bitcoin halving event passed with little fanfare. The token also remained largely range-bound after hitting all-time highs in March.
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Crypto Price Today: Ethereum Sinks as SEC Postpones ETF Decision
Among major altcoins, it fell 3.4% to $3,069.52 after the SEC postponed a decision to approve spot ETFs tracking the altcoin for US markets.
The regulator is now not expected to make a decision until early July. The SEC also has an ongoing investigation into whether Ethereum is a security, and is expected to reject applications for an Ethereum spot ETF.
Other altcoins saw mixed moves as speculation over US interest rate cuts remained in play.
rose 0.3%, while it rose 3.8%.
