Bitcoin prices showed little movement on Tuesday following the highly anticipated halving event, while concerns over potential long-term interest rate hikes continued to weigh on investor sentiment.
Despite increased on-chain activity spurred by the launch of a new protocol on the Bitcoin blockchain, the token’s price failed to see significant support from the development, with attention largely diverted from the halving event.
In the past 24 hours, Bitcoin experienced a marginal decline of 0.1%, settling at $66,318.6 by 01:26 ET (05:26 GMT).
ETF Outflows Continue Amidst Bitcoin Price Muted Performance
According to data from digital assets manager CoinShares, Bitcoin investment products, particularly exchange-traded funds (ETFs), witnessed outflows of approximately $192 million in the week ending April 21. The ongoing trend of capital outflows from ETFs reflects persistent uncertainty surrounding Bitcoin’s price trajectory.
CoinShares’ report also highlighted a decline in overall trading volumes, attributed to diminishing excitement surrounding the launch of spot Bitcoin ETFs earlier this year. In the past week alone, U.S. ETFs saw outflows totaling $244 million.
Altcoins Show Marginal Gains Amid Limited Positive Sentiment
While some alternative cryptocurrencies saw slight gains on Tuesday, including Ethereum, Solana, and XRP, the broader altcoin market remained rangebound due to a lack of significant catalysts.
Ethereum experienced a modest decline of 1.3% to $3,184.07, while Solana and XRP recorded gains of 3.2% and 2.5%, respectively. However, the overall momentum in altcoins was limited, with traders maintaining a strong bias towards Bitcoin.
Crypto Stocks Rally Amidst Spike in Bitcoin Transaction Fees
Despite relatively subdued performance in the cryptocurrency market, crypto-related stocks saw notable gains on Monday. The surge was attributed to a spike in Bitcoin transaction fees, fueled by the launch of the “Runes” protocol on the Bitcoin blockchain, enabling token minting on the platform.
Companies such as Marathon Digital Holdings Inc, Coinbase Global Inc, Riot Platforms, and MicroStrategy Incorporated witnessed significant stock price increases ranging between 6% and 13%, benefitting from the heightened activity in the cryptocurrency space.
As Bitcoin continues to navigate through price fluctuations and external market factors, investors remain vigilant for potential shifts in sentiment and regulatory developments that could influence the broader cryptocurrency landscape.
