Bitcoin Rally Falters, Leading To Broader Market Decline

According to CoinDesk, Bitcoin's attempt to rally towards $70,000 failed, resulting in a broader market decline. The CoinDesk 20 index, which tracks the largest tokens by market capitalization, fell by nearly 2%. This downturn was accompanied by a net outflow in U.S.-listed Bitcoin ETFs, indicating a potential shift in investor sentiment or profit-taking after recent gains. Traders noted that stablecoin volume, often correlated with liquidity and buying power in the crypto market, has not increased. This stagnation could signal a slowdown in the growth of the crypto market. Major tokens like Dogecoin (DOGE) and XRP led the losses, with DOGE dropping 5% and XRP falling 4%. These declines followed a failed attempt by Bitcoin to sustain a rally to nearly $70,000 earlier in the week. Despite this, some traders remain optimistic, predicting a potential run to $80,000 in the coming weeks as the U.S. elections approach. The CoinDesk 20 index fell nearly 2%, while Bitcoin itself lost 1%. Mid-cap and low-cap tokens saw generally flat market action, although memecoin Bonk (BONK) and governance token APE dropped over 7%, leading losses among smaller tokens. Traders attributed the slow uptrend in Bitcoin and other cryptocurrencies to key resistance levels and a pause in stablecoin issuances. Alex Kuptsikevich, senior market analyst at FxPro, explained that Bitcoin's failure to break the $70,000 level was a significant factor in the market's decline. He noted that bears intensified selling at $69,500 early on Monday, driving the price down to $66,500 by Tuesday morning. Kuptsikevich also pointed out that stablecoin volume has not increased since late September, potentially pausing the growth of the broader cryptocurrency market. Stablecoins are often seen as liquidity for quick purchases of coins, and their volume is closely related to higher Bitcoin and crypto prices. Bitcoin ETFs experienced a net outflow of $80 million on Tuesday, with Ark Invest’s ARKB seeing a record $134 million outflow. In contrast, BlackRock’s IBIT led inflows with $42 million, while Fidelity’s FBTC and VanEck’s HODL took in $8 million and $3 million, respectively. BlackRock’s ether ETF saw an inflow of $11 million, while other products showed no significant activity.