Crypto Market Faces Downward Pressure Amid Profit-Taking and ETF Outflows

During Asian trading hours on Tuesday, major cryptocurrencies experienced declines due to ongoing profit-taking and another day of net outflows from U.S.-listed bitcoin exchange-traded funds (ETFs) on Monday, dampening bullish sentiment.

Bitcoin (BTC) dropped to nearly $66,500, wiping out its Monday gains, while ether (ETH) decreased to $3,400, reversing all of last week’s gains. BTC hovered around the 50-day moving average at $66,000, testing the medium-term uptrend. Meanwhile, BTC ETFs saw net outflows of $145 million, continuing last week's disappointing trend.

Among major tokens, dogecoin (DOGE) and Solana’s SOL led the losses, falling as much as 9% in the past 24 hours. Ton Network’s TON declined by 5%, whereas BNB Chain’s BNB performed relatively better with just a 1.5% loss. Last week, BTC briefly dipped below the $65,000 mark for the first time in a month as ETF net outflows surpassed $500 million and the Federal Reserve indicated only one interest rate cut in 2024.