Crypto Market Turbulence: Bitcoin and Ethereum Prices Plummet Amid $3.2B ETF Outflows

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— 2 min read
Crypto Market Turbulence: Bitcoin and Ethereum Prices Plummet Amid $3.2B ETF Outflows

The cryptocurrency market is currently experiencing significant turbulence, marked by a notable decline in both Bitcoin (BTC) and Ethereum (ETH) prices. As of now, Bitcoin is trading at $82,276, down from $84,654 yesterday, while Ethereum has dropped to $2,169 from $2,304. This downturn is part of a broader trend, with Bitcoin plummeting below $80,000, hitting a low of $78,433 in early Friday morning trading.

Recent data reveals a concerning pattern for Bitcoin ETFs. The U.S. spot Bitcoin ETFs have seen a staggering $3.2 billion in net outflows over the past eight days, marking the longest negative streak since their inception. February has recorded a monthly net outflow of $3.65 billion, with only four days of inflows. The largest single-day outflow was on Tuesday, where $1.14 billion exited these funds, particularly impacting BlackRock’s Bitcoin ETF, the largest by net assets.

On the Layer 2 (L2) front, the Total Value Locked (TVL) has also seen a decline, currently sitting at $6.13 billion, down from $6.55 billion yesterday. The top five L2 networks are facing similar pressures:

  • Base: Current TVL: $2.75B, Yesterday: -7.09%
  • Arbitrum: Current TVL: $2.48B, Yesterday: -5.34%
  • Mantle: Current TVL: $264.77M, Yesterday: -5.72%
  • Linea: Current TVL: $183.76M, Yesterday: -8.25%
  • Blast: Current TVL: $161.94M, Yesterday: -8.39%

Despite the market's downturn, there is some positive news in fundraising efforts. Today, a total of $3.75 million was raised, with the biggest round coming from Finisterra Labs, which secured the entire amount. Cumulatively, fundraising for the current week stands at $530.07 million, showcasing that while the market is shaky, investment interest persists.

In regulatory news, the U.S. Securities and Exchange Commission (SEC) is reportedly set to dismiss its lawsuit against Consensys regarding the MetaMask wallet. This decision comes after an agreement was reached in principle, which could signal a more favorable regulatory environment for blockchain projects.

Additionally, Bybit has initiated a community effort to combat the Lazarus Group, a notorious North Korean hacking organization responsible for a $1.4 billion heist. The exchange's CEO is rallying the crypto community to help recover the stolen assets through a new bounty program.

Meanwhile, Hong Kong is making strides in technology investment, allocating $125 million to expand AI and Web3 research, enhancing its Cyberport's supercomputing capabilities to boost blockchain development and talent programs.

In the tech sphere, OpenAI has released GPT-4.5, its most advanced and compute-intensive chat model to date, which could have implications for various sectors, including blockchain and cryptocurrency.

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