Bitcoin value dropped to a weekly low ahead of Tuesday’s Fed meeting and U.S. inflation statistics, and US spot Bitcoin exchange-traded funds (ETFs) saw their first net outflow in more than 19 trading days. 

Bitcoin attempted to breach the coveted $70,000 mark, but it was forcefully rebuffed and fell back by more than 2K within an hour. The value of the entire cryptocurrency market dropped by almost $100 billion because of the altcoins’ reddening. Daily, the total value of liquidated positions has increased to over $170 million. 

The weekend saw mild movements in the price of Bitcoin, but Monday started more positively. Bitcoin tried to push through the psychological barrier at $70K but the bears prevented a clear triumph by quickly stopping the move even though they momentarily crossed that line.  

The most valuable cryptocurrency, bitcoin, dropped more than 2% to $67.7K, continuing its decline from recent highs of almost $72K. The second-largest coin, ether dipped below $3,550 at one point.

Price action highlighted Bitcoin’s Bollinger Bands are currently contracting, an indicator of a slowdown in the market. The ultimate volatility explosion increases with the length of the Bollinger band squeeze. Bollinger bands, or volatility bands positioned two standard deviations above and below the price’s 20-day moving average, are displayed together with Bitcoin’s price on the chart.

Farside Investors data showed losses came into play after a collective withdrawal of $64.9 million from the spot bitcoin exchange-traded funds (ETFs) listed in the United States. This was the first loss from the ETFs since at least May 23. The market speculates that the recent big inflows are not the result of outright optimistic wagers, but rather from institutions’ increased interest in the non-directional basis trade. 

The dollar index, which measures the value of the US dollar relative to a basket of other fiat currencies, steadied its two-day advances as yields declined and prices of the presumed haven, US Treasuries, moved higher. As per TradingView, a charting site, the yield on the benchmark 10-year note decreased by three basis points, reaching 4.45%. With $39.5 million in net outflows, the Grayscale Bitcoin Trust (GBTC) took the lead, followed by the Invesco Galaxy Bitcoin ETF (BTCO) with $20.5 million and the Fidelity Wise Origin Bitcoin Fund (FBTC) with a meager $3 million outflow. 

This coincided with meek inflows from Bitwise’s and BlackRock’s ETFs of $7.6 million and $6.3 million, respectively. 

According to Morningstar, analysts predict that inflation will increase by 0.1% following a 0.5% increase in April, bringing the annual rate to 3.4%. Core inflation is projected to rise by 0.3% in May, continuing the trend from April. The Federal Open Market Committee (FOMC) will convene on Wednesday to decide on the Fed’s monetary policy.