Investing.com — Bitcoin prices fell on Tuesday as sentiment towards the currency showed little sign of improving amid regulatory issues and continued outflows from investment products, particularly exchange-traded funds.
Shares fell 1% in the past 24 hours to $63,558.2 by 01:52 ET (5:52 p.m. Japan time).
Sentiment towards the crypto market was dashed this week by a report showing that less than 10% of all stablecoin trades, a key means of trading cryptocurrencies, come from organic or real users.
The report raised questions about how much retail demand there really is for cryptocurrencies, especially given that stablecoin operators have recorded consistent increases in market capitalization.
Furthermore, in trading apps, robinhood market Inc. (NASDAQ:) said it could face regulatory action from the Securities and Exchange Commission over crypto tokens traded on its platform. The SEC has also been seen postponing important decisions regarding ETFs.
This negative factor comes amid continued outflows from crypto investment products, indicating that sentiment towards the sector remains negative.
Bitcoin ETF outflows increase for third consecutive week
Capital outflows have continued from crypto investment products for the third consecutive week, according to data released by digital asset management firm CoinShares on Monday.
Overall outflows amounted to $435 million, with $423 million coming from Bitcoin products.
Outflows from the Grayscale Bitcoin ETF still account for the majority of total outflows. However, inflows into other Bitcoin ETFs were also seen to slow significantly.
After the Bitcoin halving event passed without much fuss, the weakening in flows comes amid a lack of immediate clues for the crypto market. The token has mostly remained range-bound after hitting record highs in March.
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Crypto prices today: Ethereum falls as SEC postpones ETF decision
Major altcoins fell 3.4% to $3,069.52 after the SEC postponed its decision to approve spot ETFs tracking altcoins for the US market.
Regulators are currently expected to make a decision by early July. The SEC is also continuing to investigate whether Ethereum is a security and is widely expected to deny the application for a Spot Ethereum ETF.
Other altcoins also had mixed movements as expectations for a US interest rate cut remained.
It rose by 0.3% and 3.8%.
