Ether, the second largest cryptocurrency, followed Bitcoin’s lead and dropped below $3,550 at one point. The CoinDesk 20 Index, which represents a broader cryptocurrency pool, fell 1% to 2,370 points.

This decline is thought to be driven by a cumulative outflow of $64.9 million from spot Bitcoin exchange-traded funds (ETFs) listed in the US. According to provisional data published by Farside Investors, this is the first outflow since the end of May. Recently, interest in cryptocurrencies has increased and there has been a strong inflow into these funds.

However, market rumors suggest that these inflows are due to investors’ increased interest in base trading that is immune to volatility, rather than a clear bet that the value of cryptocurrencies will increase. In other words, investors may be developing strategies to make profits regardless of whether Bitcoin’s price goes up or down.

This decline in the cryptocurrency market also had an impact in traditional markets. Chinese stocks led the decline in Asian stock indexes amid ongoing real estate market concerns and reports that the Bank of Japan may scale back its liquidity-boosting bond purchases this week. Chinese stocks fell more than 1%.

On the other hand, the US dollar continued to strengthen. The dollar index is an indicator that measures the exchange rate against a basket of major currencies. This index continued its two-day gains. This may indicate that investors are fleeing cryptocurrencies and other risky assets and turning to the US dollar.

Finally, U.S. Treasuries also attracted investors’ attention. Prices of US Treasuries, a so-called safe haven, rose slightly. This rise caused yields to fall. The yield on the benchmark 10-year bond fell three basis points to 4.45%, according to charting platform TradingView. Return and price are inversely proportional. So when the price rises, the yield falls. This may indicate increased investor demand for US Treasuries.

In short, the cryptocurrency market seems to have entered a correction period after its recent rise. Fund outflows from cryptocurrency ETFs in the US and real estate market concerns in China may have contributed to this decline.

In contrast, as the US dollar continues to strengthen, US Treasuries are also attracting investors’ attention. It is necessary to see how the cryptocurrency market will react in the coming days and how traditional markets will be affected by this situation.