Bitcoin subdued around $60k as ETF outflows extend into 7th week
Investing.com-- Bitcoin slid on Friday, remaining subdued around the key $60,000 level as investors pulled out further from spot exchange-traded funds amid growing anxiety over higher U.S. interest rates.
A broader sell-down in risk-driven assets, specifically equities, also kept traders largely cautious towards speculative plays like cryptocurrencies.
Bitcoin fell 2.8% to $60,084.5 by 05:39 ET (09:39 GMT). It was trading down about 5% this week.
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Bitcoin spot ETFs clock 7th straight week of outflows
Spot Bitcoin ETFs clocked a seventh straight week of outflows, data from SoSoValue showed, as investors continued to steadily pivot out of crypto.
ETFs marked an outflow of $1.35 billion this week, with outflows once again picking up after a brief lull over the past two weeks.
The figures pointed to weakening institutional and retail appetite for crypto, amid a storm of uncertainties and headwinds.
Central to this was a growing preference among investors for assets with clearer fundamentals, especially artificial intelligence stocks. The sector has vastly outpaced crypto in recent years amid growing optimism over the technology.
While the AI rally did hit a snag this week, it drew few buyers into crypto.
Crypto markets were also pressured by persistent concerns over high U.S. interest rates, after the Federal Reserve struck a hawkish chord last week.
PCE price index data released on Thursday showed inflation remaining sticky and well above the Fed’s 2% annual target– a trend that could give the central bank more impetus to hike interest rates.
Higher rates bode poorly for speculative assets like crypto, which traditionally offer no direct yields.
Binance fails to secure EU crypto license
Binance, the world’s biggest crypto exchange, failed to secure a license in Greece that would have allowed the company to continue operating in Europe under a new licensing regime.
The exchange said that users will continue to be able to access their assets on the exchange, and that it will pursue authorization in another European Union member state.
Under new EU rules, called MiCA, crypto firms have until end-June to obtain a license from individual member states, which they can then use as a “passport” to operate across the bloc.
The regulation was largely aimed at reining in crypto exchanges, which European officials have long criticized for potentially destabilizing markets if not properly controlled.
Binance’s BNB token fell 0.2% on Friday.
Crypto price today: altcoins dither amid few positive cues
Broader crypto prices largely fell on Friday. World no.2 crypto Ether slid 5.1% to $1,565.27 and was close to a 14-month low.
XRP fell 4.1% and Cardano slipped 2.8%, while Solana rose 1.3%.
Among memecoins, Dogecoin fell 3.2%, while $TRUMP shed 1%.
Vahid Karaahmetovic contributed to this report.
