Bitcoin (BTC) offered some relief this Wednesday after plummeting more than 8% against the US dollar on Tuesday.
Though not a sweeping reversal, The BTC/USD pair has reclaimed 2.5% of these losses in early trades, bringing the world’s largest cryptocurrency close to $63,550 at the time of writing.
Bitcoin’s outstanding 2024 rally began to cool off after hitting its all-time high on 14 March, though it still remains 50% higher year to date.
Bitcoin’s surges in 2024 – Source: tradingview.com
Data published by Bloomberg shows a cooling off in demand for spot bitcoin exchange-traded funds, the approval of which has been behind bitcoin’s record rally this year.
The 10 ETFs on the market saw their biggest outflows so far on Tuesday, losing over $326 million in cash.
Short-term cool off aside, bitcoin ETFs have seen net inflows of nearly $12 billion worth of cash inflows since their 10 January approval, resulting in a breakneck tailwind for the cryptocurrency markets.
Week-on-week, bitcoin is now down 12%, with the second-largest cryptocurrency Ethereum (ETH) falling 16%.
In the broader altcoin space, Solana (SOL) remains bullish, adding over 13% week on week, though all other blue chips, including BNB, Ripple (XRP), Dogecoin (DOGE) and Cardano (ADA) are all in the red.
Global cryptocurrency market capitalisation currently stands at $2.4 trillion, with bitcoin dominance at 53.7%.