‘Keep Calm’—Fed Sparks $300 Billion Crypto ETF Price Crash, Hitting Bitcoin, Ethereum, XRP, Solana And Dogecoin

Bitcoin
BTC
and other major cryptocurrencies—including ethereum, XRP
XRP
, solana and dogecoin—have crashed back (even as crypto price data shows the bitcoin halving could trigger a huge earthquake as soon as this month).

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The bitcoin price has lost almost 10% over the last 24 hours, plummeting from over $70,000 per bitcoin to under $65,000. Ethereum has lost 8%, while solana is down 10% and the meme-based dogecoin is off by 13% despite Telsa billionaire Elon Musk teasing a huge X upgrade.

The latest price crash—wiping around $300 billion from the combined crypto market—comes as cash continues to flee Grayscale’s new spot bitcoin exchange-traded fund (ETF) and fears swirl that the Federal Reserve might hold off cutting interest rates—even as a leak suggests China could be about to blow up the crypto market.

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“Its actually a $302.6 million outflow for GBTC [yesterday],” Bloomberg Intelligence ETF analyst James Seyffart posted to X. “Honestly higher than I expected. Thought this was have slowed down by now.”

The latest outflow from Grayscale’s GBTC recently converted spot bitcoin ETF takes its total outpouring to more than $15 billion since trading began on January 11, with the fund down in bitcoin terms from just under 620,000 to a little over 333,000, according to CoinGlass data.

Last week, spot bitcoin ETF issuer Bitwise’s chief investment officer Matt Hougan called on traders to “keep calm” and ignore the bitcoin price roller coaster.

“Lately the crypto markets have been volatile, with bitcoin bouncing between $60,000 and $70,000,” Hougan wrote in the note, posted to X. “The media gets breathlessly worried about every pullback and outrageously excited about every run-up. My advice? Keep calm and take the long view.”

Meanwhile, U.S. economic data showed factory activity unexpectedly expanded last month, its first growth since September 2022. The increase means the Federal Reserve might delay an expected interest rate cut as the economy shows signs of continued strength.

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Bitcoin and crypto traders are now eyeing support levels of around $63,000 per bitcoin.

“A promising consolidation has yet to bear fruit,” Alex Kuptsikevich, FxPro senior market analyst, said in emailed comments. “For bitcoin, the bullish chart picture has not changed: we see only an extension of the consolidation after the rally from the January lows to mid-March. The next key support area is $62,800-63,000, where the 50-day moving average and the lows of the corrective pullback in March are centered.”

“Ethereum
ETH
has been testing the 50-day MA since the beginning of the day, which actively played the role of support in March,” Kuptsikevich added. “It has been rising steadily since the end of last year, but too much distance from it has caused corrections on more than one occasion.”