They didn't benefit on Friday. Several cryptocurrencies lost value during a widespread decline. By late afternoon trade, utility cryptos Stacks, Litecoin, and Cronos were down by about 4%. Gala (CRYPTO: GALA) and Injective (CRYPTO: INJ) also fell roughly 10%.
The Bitcoin bullrun Bitcoin (CRYPTO: BTC), the most capitalized coin, is always in the lead and what most people think of when they hear "cryptocurrency". Bitcoin dominates this asset class due to its popularity.
That's helped the sector in recent months as Bitcoin has soared. Almost $74,000 was its record high this week.
Much of this is due to spot Bitcoin ETFs' January debut. These instruments, which took months to get SEC clearance, give near-direct Bitcoin ownership without the bother of buying, storing, and managing Bitcoin.
Spot Bitcoin ETF inflows falling? Profit-taking begins at some point in any sharp asset or asset class rally.
This is chicken-and-egging for Bitcoin, as spot Bitcoin ETF inflows have dropped. No rise lasts forever. According to Cointelegraph, such assets had their lowest net inflow of $132 million on Thursday. That dropped 80% from Wednesday's level, which was 38% lower the day before.
Some may think this signals a crypto market decline. However, positive macroeconomic conditions (inflation, imminent rate cuts, etc.) support the buy case for coins and tokens. I don't expect a huge sell-off. Still, Bitcoin and altcoins may become less volatile soon.
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