Bitcoin (BTC) fell more than 6% against the US dollar on Tuesday morning, bringing the BTC/USD pair to a 14-day low of $63,200.
The benchmark is facing selling pressure after smashing all-time highs above $73,000 last week, amid a large-scale rush into newly launched spot-bitcoin exchange-traded funds.
This morning's fall builds on yesterday's 1% drop and means the world's largest cryptocurrency is down 12% in the last five days, although it remains nearly 50% higher year to date.
Bitcoin’s year-to-date performance – Source: tradingview.com
Derivatives exchange BitMEX is investigating an apparent ‘flash crash’ that saw spot bitcoin prices fall as low as $8,900 on the platform.
“Yes, we are investigating potential misconduct by traders on our Bitcoin-USDT Spot market,” BitMEX Tweeted.
“However, this incident had NO impact on our billion-dollar derivatives markets. It did not move mark prices, and no liquidations were triggered by it because our indices are independent and battle-tested.”
Bitcoin’s price is also under pressure from continued outflows from Grayscale’s bitcoin ETF product (GBTC), which clocked $643 million of cash withdrawals on Monday.
This caused a net negative day for the wider bitcoin ETF market, although total net inflows since 10 January remain above $12 billion.
Bitcoin is currently down 13% week on week, with the second-largest cryptocurrency Ethereum (ETH) dipping 19% against the US dollar.
In the wider altcoin space, Solana (SOL) has pulled forward by adding 18% week on week, while Avalanche (AVAX) has surged over 20%.
Global cryptocurrency market capitalisation currently stands at $2.38 trillion, with bitcoin dominance at 53.7%.