Bitcoin and other cryptocurrencies were falling early Wednesday as exchange-traded funds tied to the cryptocurrency faced outflows. However, former U.S. President Donald Trump is looking to get the support of the crypto industry.
was down 0.5% over the past 24 hours to $67,286. Bitcoin hit a record high near $74,000 in mid-March amid a surge of interest from new spot exchange-traded funds but its price has dropped since then.
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
“U.S. spot bitcoin ETFs had racked up 19 consecutive days of net inflows, the longest streak since their launch; However, the streak ended in Monday’s session, after spot ETFs reported net outflows, a side effect of Friday’s strong nonfarm payrolls report which dampened expectations for interest rate cuts,” wrote eToro analyst Simon Peters in a research note.
Spot Bitcoin ETFs suffered outflows of around $65 million on Monday and $200 million on Tuesday, according to crypto data firm Coinglass.
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Trump met with executives of Nasdaq-listed Bitcoin mining companies
and
on Tuesday. He is hoping to beat incumbent Joe Biden in the coming presidential election and his campaign has begun to accept donations of cryptocurrencies.
“We want all the remaining Bitcoin to be MADE IN THE USA!!! It will help us be ENERGY DOMINANT,” Trump said in a post on social media platform Truth Social.
—the second-largest crypto—was down 0.6% at $3,516 but is up 22% over the past month.
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The Securities and Exchange Commission recently approved critical rule changes to allow spot Ether exchange-traded funds to trade. However, it could still take weeks or months before issuers receive final permission to launch the products.
Smaller cryptos, or altcoins, were in the red with
falling 1.6% and
down 1.2%.
dropped 0.7%.
Write to Adam Clark at [email protected]
