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Many of the top tokens investors watch have seen large drops and erratic market behavior today. Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) had fallen 3.9%, 4.9%, and 5.3%, respectively, over the past 24 hours as of 3:30 p.m. ET on Tuesday.

Crypto narratives are changing, which may explain these developments. As more investors focus on this asset class's fund flow, capital flows into this sector are becoming more important. Thus, capital inflows into spot Bitcoin ETFs like the Grayscale Bitcoin ETF (NYSEMKT: GBTC) have grown more important for Bitcoin and the sector.

These three biggest cryptos appear to be moving mostly due to reports today that Bitcoin ETF and others witnessed substantial capital outflows. The Grayscale ETF led the decline on Monday with a $643 million outflow, with more likely today. Let's examine this catalyst and other Ethereum and Dogecoin investment worries.

Capital flows into spot ETFs aren't the only crypto story, but they're the biggest. Other speculative retail capital entered the Bitcoin market as spot Bitcoin ETFs like Grayscale's saw record inflows in a short time due to supply/demand dislocation fears. This caused a hype-driven rally for high-risk assets like Dogecoin.

Elon Musk has also mentioned adding Dogecoin into the Tesla buying ecosystem. We'll see if that happens, but Dogecoin's main aim is to be a speculative trading instrument for reckless traders. Bulls benefit from that in this market. Ethereum remains driven by anticipation of SEC deadlines for spot ETF applications from Grayscale and others.

If capital withdrawals from spot Bitcoin ETFs persist, this catalyst may be irrelevant. Investors will price-in expectations ahead of the catalyst, thus Ethereum may move similarly to Bitcoin until a decision is made.

Crypto investors that bought in before this speculative cash flood have done well. Despite recent capital outflows from the Grayscale Bitcoin ETF and others, these ETFs have assets under management that many assumed they wouldn't at this stage in the cycle. How the Bitcoin market balances is a matter of perception right now.

Ethereum and Dogecoin will likely correlate with Bitcoin until the Bitcoin halving and spot Ethereum ETF approvals. Brace yourselves—it's going to be a wild ride till then.

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