(BTC) fell in early Asia trading on Tuesday, erasing all the gains it made a day earlier, driven by continued profit-taking and continued net outflows from US-listed bitcoin exchange-traded funds (ETFs). .
The world's largest cryptocurrency fell about 1% in the last 24 hours to $65,635 as of 04:34 am ET (08:34 GMT). BTC initially fell as low as $64,000, before reversing some of the heavy losses.
The cryptocurrency has been hovering around its 50-day moving average at $66,000, testing the medium-term uptrend.
Bitcoin Pressured as Crypto Liquidations Reach Nearly $500 Million
Bitcoin has had a relatively quiet weekend, mostly hovering around the $66,000 mark. Monday's trading started slowly but gained momentum later in the day. However, after an unexpected increase in volatility, the main crypto asset fell more than $3,000, reaching its lowest level since May 15.
This strong volatility negatively affected overleveraged traders, with more than 190,000 positions liquidated in the last day, totaling more than $480 million. At the same time, Bitcoin exchange-traded funds (ETFs) recorded net outflows of $145 million, extending last week's poor performance and further dampening bullish sentiment in the market.
Last week, Bitcoin fell below $65,000 for the first time in a month as ETF outflows surpassed $500 million after the Federal Reserve indicated only one interest rate cut for 2024.
According to market analysts, other factors also did not contribute to supporting the price of Bitcoin. For example, French President Emmanuel Macron unexpectedly called early elections in the country, a move that strengthened the dollar as traders dumped the euro.
A strong dollar typically puts pressure on Bitcoin as it makes dollar-denominated assets more attractive to investors, reducing demand for alternative assets like Bitcoin.
Crypto Price Today: Altcoins Post Mixed Performance
Beyond Bitcoin, most major altcoins also saw slight declines on Monday morning.
The world's second-largest cryptocurrency fell 2.7% to $3,447.18, while it fell almost 6.4%. On the contrary, it increased by 2.1%, but experienced a decrease of 4.8%.
Meme tokens faced significant losses, falling 7.6% and 9%, respectively.
