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Bitcoin price today: flat at $63.5k amid regulatory woes, ETF outflows

Published 05/07/2024, 02:13 AM
Updated 05/07/2024, 08:34 AM
© Reuters

Investing.com-- Bitcoin price dropped marginally on Tuesday as sentiment toward cryptocurrencies showed little signs of improvement amid regulatory woes and as outflows from investment products, specifically exchange-traded funds, remained in play.

The world’s largest cryptocurrency fell 0.2% in the past 24 hours, sitting at $63,579.4 by 08:30 ET (12:30 GMT).

Sentiment towards crypto markets was battered this week by a report showing that less than 10% of overall stablecoin transactions- which are a key vehicle for transacting in crypto- were organic or from real users. 

The report raised questions over just how much retail demand there actually was for crypto, given that stablecoin operators, specifically Tether- clocked consistent increases in market capital. 

Additionally, trading app Robinhood Markets Inc (NASDAQ:HOOD) said it was facing potential regulatory action from 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 from crypto investment products, indicating that sentiment towards the space remained largely negative. 

Bitcoin ETF outflows extend into third straight week

Data from digital asset manager CoinShares showed on Monday that crypto investment products saw a third straight week of sustained capital outflows. 

Overall outflows amounted to $435 million, with Bitcoin products seeing outflows of $423 million.

Outflows from Grayscale’s Bitcoin ETF still made up a bulk of the overall outflows. But capital inflows into other Bitcoin ETFs were also seen slowing substantially.

Weakening flows came amid a dearth of immediate cues for crypto markets, after Bitcoin’s halving event passed with little fanfare. The token was also largely rangebound after surging to record highs in March. 

Crypto price today: Ethereum sinks as SEC postpones ETF decision

Among major altcoins, Ethereum fell 3.4% to $3,069.52 after the SEC postponed a decision to approve spot ETFs tracking the altcoin for U.S. markets. 

The regulator is now expected to make a decision only by early-July. The SEC also has an ongoing investigation into whether Ethereum is a security, and is widely expected to reject applications for a spot Ethereum ETF. 

Other alt coins saw mixed moves, as speculation over U.S. interest rate cuts remained in play. 

XRP rose 0.3%, while Solana rose 3.8%. 

Revoult launches its crypto exchange for pro traders

London-based digital bank Revoult has launched its crypto exchange, Revolut X, specifically targeting professional cryptocurrency traders.

Revolut, which has provided crypto buying and selling within its app for years, announced in February its plans to launch a dedicated exchange platform.

Revolut X aims to attract traders by offering lower fees compared to trading within the Revolut app.

According to its Tuesday announcement, the exchange will charge no fees for the trade maker and only 0.09% for the taker.

While some banks offer cryptocurrency trading to their customers in various ways, Revolut is among the first to create a dedicated crypto exchange solely for this purpose.

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