Bitcoin steadies after selloff amid overall pressure on crypto assets

Early on Wednesday, Bitcoin and other cryptocurrencies were gaining, recovering some of the losses from the selloff the day before. Over the last 24 hours, Bitcoin has increased by 0.2% to $65,505. The biggest cryptocurrency’s price has fallen since it reached a record high of around $74,000 in mid-March due to a spike in interest from new spot exchange-traded funds.

Last week saw net withdrawals from BTC Spot ETFs, ending a run of four weeks and 19 trading days of continuous inflows. The weekly net outflow came to approximately $580 million, bringing the total net inflow from the beginning down to $15.1 billion.

Spot Bitcoin ETFs have seen continued outflows of close to $300 million so far this week. Cryptocurrencies, like other risk assets, have been held back by relatively high bond yields as the market scales back expectations for interest-rate cuts from the Federal Reserve.

The recent price drop was also influenced by high selling volumes from miners. Mining activity has been impacted by the recent Bitcoin halving, which reduced block rewards. This event forces miners to optimize their capital efficiency to maintain profitability.

The price of Bitcoin has largely drifted since the April 19 halving, when the cryptocurrency’s programmatic monetary policy changed and the issuance of new tokens was cut in half, restricting supply.

The Securities and Exchange Commission recently approved critical rule changes to allow spot Ether exchange-traded funds to trade. The final approvals for the ETFs should come this summer, U.S. Securities and Exchange Commission Chair Gary Gensler told senators in a recent budget hearing.

Smaller cryptos or altcoins were in the green after steep selloffs the previous day, with Solana gaining 4.0% and Cardano rising 4.9%. Dogecoin gained 3.3%.