Bitcoin declined on Friday, remaining below key levels amid continued outflows from spot exchange-traded funds and growing concerns about high US interest rates.
The general sell-off in risky assets, primarily stocks, also forced traders to exercise caution regarding speculative instruments such as cryptocurrencies.
Bitcoin fell 2.7% to $59,918.50 as of 8:57 AM Moscow time. This represents a weekly decline of approximately 7%.
Bitcoin Spot ETFs Record Outflows for the Seventh Week
Bitcoin spot ETFs have recorded outflows for the seventh week in a row, according to SoSoValue data, as investors continue to systematically exit the crypto market. This week, ETF outflows totaled $1.35 billion, accelerating again after a brief lull over the past two weeks.
These figures indicate a weakening of interest in cryptocurrencies among both institutional and retail investors amid a host of uncertainties and headwinds.
A key factor here is the growing investor preference for assets with clearer fundamentals, particularly artificial intelligence stocks. In recent years, this sector has significantly outperformed the crypto market, driven by optimism surrounding new technologies.
While the AI rally slowed somewhat this week, it failed to attract buyers into the crypto market.
Adding further pressure on crypto markets were lingering concerns about high US interest rates after the Federal Reserve adopted a hardline stance last week. Thursday's PCE price index data showed that inflation remains robust and well above the Federal Reserve's 2% annual target—a trend that could give the central bank additional incentive to raise interest rates.
High rates are negatively impacting speculative assets like cryptocurrencies, which traditionally don't generate direct income.
Binance Failed to Receive EU License
Binance, the world's largest cryptocurrency exchange, failed to obtain a license in Greece, which would have allowed the company to continue operating in Europe under the new licensing system.
The exchange stated that users will still be able to access their assets and that it intends to seek authorization in another European Union member state.
Under the new EU regulations, known as MiCA, cryptocurrency companies are required to obtain a license in one member state by the end of June, which will then serve as a "passport" for operating throughout the bloc. The regulation is primarily aimed at restricting the activities of cryptocurrency exchanges, which European officials have long criticized for potentially destabilizing markets without proper oversight.
Binance's BNB token fell 2% on Friday.
Crypto Market Today: Altcoins Decline in Lack of Positive Signals
Most cryptocurrencies declined on Friday. Ether, the second-largest cryptocurrency by market capitalization, fell 6.4% to $1,548.27, approaching a 14-month low.
XRP fell 0.3%, while Solana and Cardano each lost more than 4%.
Among memecoins, Dogecoin fell 3.5%, and $TRUMP fell 2.9%.