Bitcoin and Ether Prices Retreat Amid Institutional Outflows

Digital asset markets are grappling with a significant retreat as institutional demand stabilizes but fails to offset broader selling pressure. While exchange-traded funds see tentative inflows, regulatory scrutiny in the U.K. and operational errors in South Korea are weighing on investor sentiment. This shift comes as Federal Reserve officials suggest the post-election rally may be losing steam. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.FED GOVERNOR WALLER NOTES FADING CRYPTO EUPHORIA AS TRADITIONAL FINANCE FIRMS ADJUST RISK POSITIONS:The initial optimism that propelled digital assets following the U.S. election is beginning to dissipate., Federal Reserve Governor Christopher Waller stated that the "euphoria" surrounding the current administration is fading as the market becomes more entwined with traditional finance. Waller suggested that recent volatility is "part of the game" and noted that mainstream financial firms have had to adjust their risk positions, contributing to the sell-off. Simultaneously, the Federal Reserve is preparing to roll out "skinny master accounts" later this year to provide fintech and crypto firms limited access to the central banking system. However, traditional banking giants are pushing back; the Bank Policy Institute and the Financial Services Forum havebefore such firms can access the U.S. payments infrastructure, citing concerns over safe operations for stablecoin issuers.BITCOIN AND ETHER PRICES RETREAT AMID INSTITUTIONAL OUTFLOWS AND LACK OF FRESH CAPITAL DEMAND:Market sentiment has shifted decisively toward a "risk-off" mood as the two largest cryptocurrencies resume their decline.that ether (ETH-USD) fell as much as 6% to $1,994, while bitcoinslipped 2.4% to $68,666.that, with bitcoin recently touching its lowest levels since October 2024. Institutional activity reflects this cooling sentiment; while U.S. bitcoin ETFs saw a $145M inflow on Monday, the broader trend shows investors have pulled $1.8B from bitcoin products and $462M from ether products so far this year.that fresh capital inflows are not expanding fast enough to absorb the distributed supply, leading to a "downward spiral" in demand momentum.CORPORATE STRATEGIES AND PLATFORM DEVELOPMENTS AMID MARKET TURMOIL:Despite the market downturn, major players are doubling down on their long-term digital asset roadmaps. Michael Saylor of Strategy. In the venture space,to integrate native USDC, issued by Circle, and the cross-chain transfer protocol on the EDGE chain. Furthermore,, a unified infrastructure layer designed to allow institutions to trade FX, crypto, and stablecoins 24/7.REGULATORY ENFORCEMENT AND COMPLIANCE MILESTONES IN GLOBAL MARKETS:Regulatory scrutiny remains high as authorities target non-compliant platforms while others achieve major licensing milestones.that the Financial Conduct Authority has launched High Court action against the HTX exchange for illegal crypto promotions to British consumers. Conversely,. Meanwhile,after the exchange mistakenly credited 620,000 bitcoin to users, raising concerns over "paper bitcoin" and internal controls.PRICE ACTION:As of time of writing, bitcoin was trading at $69,380.53, while ether was trading at $2,025.22,.