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DOGE, XRP Lead Crypto Majors Decline as Bitcoin ETFs Bleed $80M
The broad-based CoinDesk 20 (CD20), a liquid index tracking the largest tokens by market capitalization, fell nearly 2% while bitcoin lost 1%.
Updated Oct 23, 2024, 8:19 a.m. Published Oct 23, 2024, 8:16 a.m.
- Bitcoin failed to sustain a rally towards $70,000, influencing a broader market decline where the CoinDesk 20 index also fell by nearly 2%.
- U.S.-listed Bitcoin ETFs saw a break in their inflow streak with a net outflow, suggesting a shift in investor sentiment or profit-taking after recent gains.
- Traders said the stablecoin volume, which often correlates with liquidity and buying power in the crypto market, has not grown, potentially signaling a slowdown in crypto market growth.
Dogecoin and led losses among majors tokens amid a broader market downturn as traders took profits from a move higher earlier this week and U.S.-listed bitcoin } exchange-traded funds (ETFs) snapped a 7-day inflow streak.
DOGE dropped 5% while XRP fell 4% as bitcoin failed to continue a Monday rally to nearly $70,000. The tokens led gains among majors in the past 7 days on an Elon Musk endorsement and fundamental developments, respectively.
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The broad-based CoinDesk 20 (CD20), a liquid index tracking the largest tokens by market capitalization, fell nearly 2% while bitcoin lost 1%. Traders, however, foresee a run to $80,000 in the coming weeks as the U.S. elections draw near, regardless of who is elected president.
Market action remained generally flat on mid-caps and low-caps. However, memecoin and governance token APE dropped over 7% to lead losses among smaller tokens.
Traders pointed out that a key bitcoin resistance and a pause in stablecoin issuances were among the causes for a slow uptrend in bitcoin and other cryptocurrencies.
“The main reason for the entire crypto market's subsidence seems to be Bitcoin, which the bears defended against an assault on the $70K level,” Alex Kuptsikevich, senior market analyst at FxPro, told CoinDesk in an email. “They intensified selling at $69.5K early in the day on Monday and dropped the price to $66.5K on Tuesday morning.”
“Stablecoin volume has not increased since late September, setting up a potential pause in the growth of the broader cryptocurrency market, as stablecoins are often seen as liquidity for quick purchases of coins of interest. The previous growth momentum was from August to September, when the overall crypto market capitalization pushed off the bottom,” Kuptsikevich added.
Stablecoin liquidity and growth are closely related to higher bitcoin and crypto prices, as a CoinDesk analysis previously showed.
Bitcoin ETFs lost a net $80 million on Tuesday with Ark Invest’s ARKB seeing a $134 million outflow, a record figure for the product. BlackRock’s IBIT took in $42 million, leading inflows, while Fidelity’s FBTC and VanEck’s HODL took in $8 million and $3 million, respectively.
Meanwhile, BlackRock’s ether ETF took in $11 million on Tuesday while other products showed no inflow or outflow activity.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
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- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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