Bitcoin (BTC) fell one percent against the US dollar today after posting 0.7% in losses on Wednesday.
The world’s largest cryptocurrency has shown signs of cooling off in the second half of February after penning an impressive 26% gain in the opening two weeks.
Traders are taking profits in response to this rally, though bitcoin remains in a fundamentally strong position, 21% higher year to date and more than double in value year on year.
Bitcoin’s strong position is partially thanks to strong inflows across the spot-bitcoin exchange-traded fund market which launched last month.
Latest data provided by CoinShares shows net inflows of more than $2.4 billion last week, indicating a sustained appetite for bitcoin-linked ETFs.
This is despite more than $600 million in outflows from the largest ETF of the bunch, Grayscale Bitcoin Trust (GBTC).
GBTC’s excessive management fee of 1.5% has caused traders to reallocate elsewhere.
At the time of writing, the BTC/USD pair was swapping for $51,350.
Bitcoin is in the red this Thursday – Source: tradingview.com
Elsewhere in the crypto markets, Ethereum (ETH) dipped 1.5% on Wednesday but has levelled off today.
The ETH/USD pair was a whisker away from $3,000 at the time of writing, which may be acting as a resistance point on the spot markets.
Solana (SOL) and Avalanche (AVAX) are leading the losers in the wider altcoin space, having dipped 9% and 12% respectively, week on week, while BNB and tron (TRX) are up in the mid single digits.
Global cryptocurrency market capitalisation currently stands at $1.96 trillion, with bitcoin dominance at 52.9%.
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