Cryptocurrency markets were awash in red on Monday, as major altcoins experienced significant losses exceeding 10%. Analysts are grappling with the abrupt downturn, pointing to a possible link between the faltering altcoin performance and recent outflows from spot Bitcoin ETFs.

The global crypto market cap dipped to approximately $2.46 trillion, marking a 3.5% decrease over the past 24 hours. Notably, Shiba Inu (SHIB) and Avalanche (AVAX) emerged as the hardest hit among the top 20 altcoins by market capitalization on June 17, each plummeting by 12.7% and 10.6% respectively, according to data from CoinGecko.

Additional major cryptocurrencies, including Uniswap (UNI), Dogecoin (DOGE), and Solana (SOL), also experienced double-digit declines, underscoring the widespread nature of the market retreat. Ripple’s XRP managed to buck the trend marginally with a slight 0.1% increase, while Bitcoin (BTC) and Ether (ETH) saw milder losses of 1.3% and 4.4% respectively.

Henrik Anderrson, Chief Investment Officer at Apollo Crypto, commented on the lack of clear catalysts behind the market downturn, though he suggested that reduced interest in spot Bitcoin ETFs might be a contributing factor. "There’s no clear catalyst from what I can see, but looks like negative BTC ETF flows led to weakness in alts which triggered liquidations of leverage long traders in Bitcoin, Ethereum, and Dogecoin," Anderrson told Cointelegraph.

Data from Farside Investors indicated that spot Bitcoin ETFs witnessed outflows on five of the last six trading days, prompting speculation about their impact on broader market sentiment. 10xResearch echoed these sentiments, linking the recent altcoin crash to the diminished flows into spot Bitcoin ETFs over the past week.

Meanwhile, amidst the turbulence in altcoins, Bitcoin mining stocks have shown resilience and even resurgence. Mitchell Askew, Head Analyst at Blockware Solutions, noted that mining stocks, previously lagging due to concerns about post-halving profitability, have begun to recover. He highlighted the performance of the Valkyrie Bitcoin Miners exchange-traded fund (WGMI), which has surged approximately 54% since the halving event, signaling renewed confidence in the mining sector.

The current market upheaval underscores the intricate interplay between different segments of the cryptocurrency ecosystem, with analysts and investors closely monitoring developments for signs of stabilization or further volatility. As uncertainties persist, market participants remain poised to navigate potential shifts in sentiment and investment strategies across digital assets.