Institutional Selling and Redemptions Fuel Crypto Market Retreat

ETF outflows in the cryptocurrency market have continued to widen, with notable declines observed across key digital assets and related investment vehicles. According to recent market data, investors have increasingly withdrawn from crypto ETFs amid uncertainty over regulatory developments and shifting investor sentiment. This trend reflects a broader market correction, as well as a reevaluation of risk exposure in the crypto space.

The Solana-based meme coin BONK, one of the most actively traded tokens in the crypto market, has experienced mixed performance in the past weeks. While BONK's price has declined by approximately 7% in the last 24 hours, it has managed to outperform the broader memecoin category, which has seen an 11% weekly drop [1]. Despite its relative resilience, the token’s one-week price performance still trails emerging meme coin leaders such as TRUMP and PENGU [2].

BONK’s market capitalization remains at $1.76 billion, with a fully diluted valuation (FDV) of $1.93 billion. Its circulating supply accounts for 92% of the total supply, indicating a high level of liquidity. The token’s 24-hour trading volume stands at $240.14 million, with 2,985 trades recorded in the last 24 hours. While this figure highlights the token’s continued appeal, it also reflects the heightened volatility characteristic of meme coins [3].

Recent market activity has been shaped by both institutional and retail investor behavior. BONK saw a 5.01% increase in 24-hour trading volume compared to the previous period, suggesting ongoing interest despite its price decline. The token also experienced a sharp 14% drop in late July, attributed to accelerated institutional selling and a risk-off market environment [4]. In contrast, a corporate treasury initiative in mid-August boosted BONK’s supply by $25 million, signaling renewed institutional support [5].

Market participants have closely monitored the token’s price action against key resistance and support levels. For instance, BONK briefly reached $0.00002841 in early August before retreating 8%, highlighting the challenges faced by meme coins in maintaining upward momentum [6]. Analysts note that such price swings are typical in the highly speculative meme coin segment, where sentiment and trading volume often dictate short-term price movements.

The broader context of ETF outflows underscores the growing caution among institutional investors. With the global crypto market facing regulatory uncertainty, many investment funds have opted to reduce their exposure, contributing to a decline in overall trading volumes across major platforms. This trend has been particularly pronounced in the United States, where a number of crypto ETFs have reported significant redemptions in the past quarter [7].

Source: [1] BONK price dropped ↘7% since yesterday, although outperforming the Memecoin category's ↘11% weekly decline. [2] BONK price dropped ↘7% since yesterday, although outperforming the Memecoin category's ↘11% weekly decline. [3] Recent trends: Bonk's all time high is $0.000059. [4] BONK Drops 14% as Institutional Selling Accelerates in Risk-Off Environment. [5] Solana Memecoin BONK Gets a $25M Corporate Treasury Boost. [6] BONK Retreats 8% After Climbing to August High. [7] BONK Pushes Higher, Tests Resistance at $0.0000264.