Cryptocurrency Markets Experience Significant Decline as Bitcoin and Ether Prices Drop

The crypto market has seen substantial weakness over the past 24 hours, in line with bearish post-Fed options pricing and a strong dollar index. Bitcoin has fallen 2.6% to $112,700, while ether has slid over 6%, according to CoinDesk data. The CoinDesk 20 Index has dropped nearly 8% and the CoinDesk 80 Index has lost 7.5%, indicating widespread market weakness. US crypto equities have also come under pressure in pre-market trading, with Bitcoin investor Strategy and digital asset exchange Coinbase Global both losing 2.8%. Some analysts view the pullback as a healthy correction that clears excessive leverage from the market, paving the way for a more sustained advance. However, others remain cautious, citing insufficient inflows to drive bitcoin prices higher. Year-to-date, crypto markets have attracted around $140.5 billion in inflows, with $63.1 billion from stablecoins, $52.4 billion into bitcoin, and $24.9 billion into ether. Recent ETF flows indicate a renewed preference for bitcoin over ether, with US-listed bitcoin ETFs raising over $3.48 billion this month, compared to just $406.87 million for ether ETFs.