Cryptocurrency Market Sees Fragile Relief Bounce Amid Institutional Outflows
The cryptocurrency market experienced a fragile relief bounce this morning after a two-day outflow of institutional capital. Bitcoin and Ethereum ETFs lost $1.11 billion in just 48 hours as the Senate blocked the CLARITY Act and the Fed raised interest rates by 25 basis points to 3.75%, 4.00%. The U.S. Securities and Exchange Commission (SEC) postponed the launch of Teucrium's leveraged inverse XRP ETF for the 19th time, citing no explanation.
Despite this turmoil, some assets demonstrated resilience. Solana (+$116.9 million) and XRP (+$3.5 million) recorded opposing institutional inflows, while capital rotated into specialized AI protocols and privacy-sector assets. Zcash surged past $1,350, increasing its market cap to $23 billion and triggering a massive short squeeze that trapped a $51.5 million short position.
According to on-chain trackers, BlackRock initiated the transfer of large volumes of assets to Coinbase Prime custody, moving 54,096 ETH worth approximately $131.7 million and 2,015 BTC worth approximately $153.8 million. This typically precedes settlements related to ETF share sales, suggesting a high probability that funds will record net outflows at the close of this week.