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Coinbase and MicroStrategy Plunge 5% Amid Crypto Carnage
The crypto market is experiencing a significant downturn, with major players like Coinbase and MicroStrategy taking a hit. According to recent data, both companies have plunged by around 5%, indicating a stark change in investor sentiment.
Risk assets plummeted after the market began anticipating fewer rate cuts next year. This sudden shift has led to massive ETF outflows. Despite being a relatively small correction compared to previous cycles, this decline is still concerning for investors.
In related news, CryptoQuant CEO Ki Young Ju noted that Bitcoin’s drawdowns have been significantly smaller during the ongoing bull run due to sufficient buying from exchange-traded funds (ETFs) and institutions. However, it appears that this support has worn off as a result of the recent market turmoil.
Thursday saw the biggest outflows for Bitcoin ETFs, with these products losing a staggering $671.9 million. This marks the second-worst day on record, surpassed only by a previous incident where they lost $563 million on May 1. Interestingly enough, both instances have been linked to hawkish Fed rate decisions that caught investors off guard.
It’s unclear what this means for the cryptocurrency market in the long run.
Source: u.today
