Major cryptocurrencies traded mixed on Monday evening as the bullish momentum that drove Bitcoin to achieve an all-time high of $73,835 on March 14 appears to be diminishing.
What Happened: The decline in Bitcoin’s price comes with the belief of some investors that the BTC market has become overheated following the approval of spot ETFs.
Analysts say that the pre-halving drawdown is happening at the same time as the upcoming Federal Open Market Committee (FOMC), which is set to conclude on March 20.
Spot Bitcoin ETFs experienced a surge in inflows last week, reaching a record high. However, according to 10X Research, a crypto analytics firm, a decrease in demand in the coming days may lead to a downturn in bitcoin’s price.
During the five-day period ending on March 15, the 10 ETFs collectively attracted $2.6 billion in new funds, as reported by Farside Investors. The majority of these inflows occurred from Monday to Wednesday, driving BTC to reach new all-time highs of nearly $74,000.
Subsequently, the net inflows for Bitcoin ETFs on Thursday and Friday were only $133 million and $198 million, respectively. This coincided with a sharp decline in BTC’s value to below $65,000 over the weekend.
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