Crypto Market Under Pressure as Regulator Delays and ETF Flows Sour
The crypto market is under pressure as Bitcoin drops to around $62,900 and XRP hovers near the $1 threshold. The main factors contributing to this downturn are slowed progress in US regulation, renewed net outflows from Bitcoin spot ETFs, and rising long-term US Treasury yields.
US regulatory progress has stalled due to concerns about the Clarity Act in the Senate and the 'innovation exemption' arrangement, which was intended to provide clearer operational space for tokenized securities trading. The SEC's advancement of 'Reg Crypto' has also been postponed, further delaying clarity on crypto regulation.
The financial side is not providing support either. US-listed Bitcoin spot ETFs have experienced net outflows of approximately $333 million so far this week, reversing last week's net inflow of about $853 million. This marks a significant reversal in institutional capital flows, with year-to-date net outflows exceeding $4 billion.
The rising 30-year US Treasury yield to 5.22% is also putting pressure on the market. Some traders consider this level the highest since 2001, and it increases the opportunity cost of holding non-interest-bearing assets like Bitcoin.