Bitcoin fell back below $105K, after briefly touching $107K this morning. The market is clearly not ready to switch to a mode of frenzied optimism, continuing to take profits after growth impulses have been realised. The reduction in support from corporate buyers is having an impact.
Zcash has fallen back to $477, losing almost 40% from its peak at the end of last week. Current developments continue to fuel our fears that we are witnessing nothing more than a repeat of the dynamics of previous years, when the sharp acceleration of altcoins, and ZEC in particular, occurred as the market was already in decline.
According to CoinShares, global crypto funds experienced an outflow of $1.172 billion last week, the highest in nearly three months. Investments in Bitcoin fell by $932 million, in Ethereum by $438 million, and in Sui by $4 million. Investments in Solana grew by $118 million, in XRP by $28 million, in HBAR by $27 million, and in Hyperliquid by $4 million.
The options market is not confident that Bitcoin will be able to renew its record highs by the end of the year, according to QCP Capital. The situation is exacerbated by continued selling by long-term holders and outflows from Bitcoin ETFs.
