On Monday, crypto markets sank into a sea of crimson; several cryptocurrencies dropped more than ten percent. An industry analyst noted that the sudden drop in the market cannot be explained with a clear catalyst.

Avalanche See Double-Digit Drop and Shiba Inu

Down 3.5% over the past 24 hours, the total crypto market capitalization now stands at $2.46 trillion. Based on CoinGecko data, Shiba Inu and Avalanche have had the toughest hit among the top 20 cryptocurrencies by market capitalization on June 17; declines of 12.7% and 10.6% respectively. Solana dropped 9.4%; Uniswap (UNI) and Dogecoin also had double-digit declines. Though it only slightly increased, Ripple’s XRP was the only non-stablecoin not in the red.

Analyst Views: No Explicit Trigger for Decline in Markets

Declining 1.3% and 4.4% respectively during the past 24 hours, Bitcoin and Ether have also witnessed falls. Chief investment officer Henrik Andersson of asset manager Apollo Crypto said he was unable to identify the primary reason the market dropped but speculated that declining demand in spot Bitcoin exchange-traded funds (ETFs) might have had a role.

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“Based on what I can see, there is no obvious catalyst; but, it appears that negative BTC ETF flows caused weakness in alts which set off liquidations of leveraged long traders in Bitcoin, Ethereum, and Dogecoin,” Andersson said. On five of the last six trading days, spot Bitcoin ETFs have suffered outflows according to data from Farside Investors.

Although digital asset company 10xResearch argued the relationship might be the other way around, it also linked the current altcoin crash to the reduction in spot Bitcoin ETF flows over the last week. “It has come as a surprise that Bitcoin is failing to rally despite weak inflation data; but, the Ethereum and altcoin collapse might have been expected,” 10xResearch said.

Stocks for Bitcoin Mining Show Strength in Face of Market Decline

Bitcoin mining stocks have been rising nicely in recent weeks, helping to offset some lost ground resulting from April’s halving event. Mitchell Askew, lead analyst at Blockware Solutions, said “mining stocks underperformed prior to the halving due to fears about post-halving profitability.” “But that worry has now been eased; mining stocks are returning to equilibrium after underperforming relative to Bitcoin and its proxies, notably MicroStrategy (MSTR).”

Askew pointed out that after the halving incident, the Valkyrie Bitcoin Miners’ exchange-traded fund (WGMI) is currently up almost 54% indicating that market confidence has returned to the mining industry.

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