The encryption market has weakened again in the last 24 hours. Bitcoin returned to about $6.29 million, while XRP hovered around $1. The main reasons for the market constraints are the slowdown in United States regulation, the re-emergence of the Bitcoin spot ETF net outflow and the continued upward trend in long-term US debt returns.
US regulation is slowing down again.
The stagnation of the United States Senate ' s advance on Clarity Act has weakened the market ' s expectation of clear regulation of encryption. At the same time, the United States Securities and Exchange Commission is said to have again deferred the “innovation exemption”.
This arrangement, which was to be seen as an important complement to the exchange of monetized securities, aims to provide a clearer operating space for related transactions on block-chain networks within the framework of existing securities laws. Reports indicate concerns about the legal basis and market implications of the White House and Wall Street.
In addition, there has been a delay in the “Reg Cripto” being advanced by the SEC. While the rule was intended to establish a regulatory framework for the financing of token projects, the regulator has temporarily postponed the public meeting scheduled for Friday and no new dates have been given.
Bitcoin, ETF, net outflow.
The financial context is also not supported. The United States-listed spot of Bitcoin ETF recorded about $333 million in net outflows so far this week, reversing the net inflows of about $853 million last week.
- Net outflows this week: approximately $333 million
- Net inflows last week: approximately $853 million
- Net outflows since the beginning of the year: over $4 billion
From the beginning of the year to date, the cumulative net outflow of such funds has exceeded $4 billion, indicating that there has not been a sustained return on institutional funds. For the market, the direction of ETF funds is often seen as an important indicator of the risk preferences of mainstream funds.
30 Annual United States debt return 5.22 per cent
There is also increasing pressure at the macro level. The United States Department of the Treasury auctioned $25 billion on Thursday 30 years of national debt, with a high return of 5.22 per cent. According to some traders, this level is high since 2001.
Rising long-term rates of return mean higher financial costs and higher opportunity costs for holding interest-free assets. In the case of assets that do not generate cash gains, such as bitcoin, this usually reduces short-term risk preferences.
Against this background, the one dollar mark of the XRP became the focus of market attention. If this position is lost, it may be further amplified. It was mentioned that many traders had set up warehouses below that level at the end of 2024, which made the price more psychological.
However, the market has not entirely turned to pessimism. Some of the researchers continue to believe that the encryption market may still have a stronger rebound in the last months of the year if the funding and risk preferences for follow-up improve.