Crypto Market Loses $24B Amid Semiconductor Sell-Off and ETF Outflows

The cryptocurrency market experienced a significant decline on July 28, losing nearly $24 billion in market capitalization. Bitcoin's price slipped below $64,000, with Ethereum and other major cryptocurrencies also experiencing losses.

The global semiconductor sell-off triggered the broader retreat from risk assets, but the crypto market had already been showing signs of weakness due to spot Bitcoin ETF outflows ahead of the Federal Reserve meeting. US spot Bitcoin ETFs recorded three consecutive trading sessions of net outflows, removing an important source of spot demand for Bitcoin.

The decline in crypto markets was also influenced by cautious sentiment ahead of the Federal Reserve's policy decision on July 29. While interest rates are expected to remain unchanged, investors continue to watch the central bank's outlook for clues on future policy moves, leading to reduced exposure to risk assets, including cryptocurrencies.