Bitcoin Falls 6.48% as Crypto Market Shrinks to $2.31 Trillion

Bitcoin (BTC) fell 6.48% as the wider crypto market dropped 5.46% in 24 hours to $2.31 trillion, while spot Bitcoin ETFs recorded $1.44 billion in outflows.

Bitcoin’s percentage decline exceeded the broader market’s loss, while the $2.31 trillion market value captures the pullback across crypto assets. ETF outflows added a separate signal: money left spot Bitcoin products as the market fell. Price changes and ETF flows pointed in the same direction during the sell-off.

Rising U.S. inflation and Treasury yields formed part of the backdrop. Those increases heightened concern about another Federal Reserve rate hike in December, drawing investors away from riskier assets. That concern was tied to crypto’s weakness, and ETF outflows intensified the sell-off.

The episode combined a drop in Bitcoin, a wider decline across the crypto market and withdrawals from spot Bitcoin ETFs. It also unfolded amid concern about inflation and yields, factors that have made investors wary of another rate increase later this year.