Cryptocurrency Market Sees Significant Decline in Value Due to Bitcoin Sales

The cryptocurrency market has been experiencing a decline in value over the past day, with the overall capitalization reducing by approximately 1.74% to $2.31 trillion. This drop is largely attributed to a decrease in Bitcoin's price following sales by miners.

According to data from CoinMarketCap, Bitcoin dominance is above 58%, confirming its role as the main driver of the wider crypto market. The negative momentum increased after an announcement by miner Bitdeer that it had sold its weekly production of about 189.9 BTC.

The sale of this large quantity of BTC has contributed to the circulating supply of the token, which in turn has put downward pressure on the price. This is further exacerbated by outflows from U.S. spot Bitcoin ETFs, with data provided by SoSoValue recording negative net flows of $315.86 million this past week.

The decline in Bitcoin's price has also had a ripple effect on altcoins such as Solana and XRP, which have seen significant losses. The CMC Fear and Greed Index for the crypto market fell to 14, indicating extreme conditions of fear, with traders not making buy moves even as token prices reduced.

Meanwhile, Ethereum recorded higher losses than Bitcoin, further indicating a shift towards lower-risk assets. BTC price was at about $67,300, with Ethereum falling below $1,950 based on CoinMarketCap data.