June 11, 2024

Bitcoin fell below $67,000 during the European morning, extending a drop from $72,000 that commenced on Friday. The decline follows $65 million in cumulative outflows from the U.S.-listed spot bitcoin ETFs on Monday, the first loss since at least May 23, according to provisional data published by Farside Investors. Inflows have recently been strong, although the market chatter is that they stem from institutions' growing interest in the non-directional basis trade rather than outright bullish bets. At the time of writing, BTC is more than 3.5% lower than 24 hours ago. The broader digital market has followed suit, with ether dropping over 4% to $3,540 and the CoinDesk 20 Index (CD20) falling almost 3.4%.

GameStop shares fell 12% on Monday, weighing heavily on some meme tokens that tend to mirror the stock's movements. Solana-based meme token GME, which parodies the company's stock ticker, slid 25%, reversing a more-than 200% rally over the past seven days. Related tokens like Roaring Kitty and some cat-themed tokens, which previously moved alongside GME stock, lost an average of at least 10%, according to data tracked by CoinGecko. Dog-themed tokens doge, shiba inu and floki pared last week's gains, falling from 4% to 10%. GameStop shares have sunk 62% from a two-year high on Thursday after the company said it would sell up to 75 million shares and announced a drop in quarterly sales. 

The Cardano network is set to move into the final phase of a multiyear program to become a wholly decentralized blockchain ecosystem later this month, co-founder Charles Hoskinson said in an X post. Once the switch is complete, Cardano will no longer be actively managed by Cardano development firm IOHK but will be wholly run by community members. “It looks like June will be the month that Cardano Node will reach 9.0,“ Hoskinson posted. “This means that Cardano is Chang fork ready and waiting for 70 percent of the SPOs to install the new node. Then, a hard fork can occur pushing Cardano into the Age of Voltaire.” Native token ADA has fallen 3.4% in the last 24 hours, broadly in line with the CD20.

The combined $65 million in outflows from U.S. spot bitcoin ETFs on Monday brought their record 19-day run of net inflows to an end.

Grayscale’s GBTC led outflows at $40 million, while Invesco and Galaxy Digital's BITCO and Valkyrie's BRRR lost $20 million and $16 million respectively. 

Such outflows came amid a slide in the cryptocurrency market and losses in broader stock markets. Traders on Monday warned of a volatile week ahead as investors await a U.S. CPI reading on Wednesday and a speech from U.S. Treasury Secretary Janet Yellen on Friday,  which can cause a reaction in riskier assets such as cryptocurrencies.

The Fed’s monetary policy is also to be decided at a two-day Federal Open Market Committee (FOMC) meeting starting today, which may further add to market uncertainty based on comments.