In early July 2024, an unexpected halt in the inflow of funds into Bitcoin ETFs occurred in the cryptocurrency market, displaying a potential impact on market dynamics.
Outflows from Bitcoin ETFs
Starting from July, a significant outflow of $342.2 million was witnessed from Bitcoin ETFs, marking the end of a 15-day streak of inflows amounting to $4.7 billion. The BlackRock IBIT fund notably did not report any new activity during this time, while Fidelity and Grayscale recorded substantial withdrawals.
Bitcoin's Pause and Forecasts
Despite major inflows, Bitcoin was unable to maintain its upswing around the $105,500 level. Analysts suggest that current conditions around these levels are influenced by anticipation of macroeconomic factors. Analyst Valentin Fournier points out that without new catalysts, Bitcoin is unlikely to surpass the $110,000 mark.
Ethereum on the Rise
While Bitcoin faces outflows, Ethereum is witnessing significant inflows. U.S.-based Ethereum ETFs recorded a net inflow of $40.7 million, which may reflect interest from asset managers in alternative digital assets.
Currently, the cryptocurrency market showcases a subtle tug-of-war between Bitcoin and Ethereum, each occupying its niche. While Bitcoin faces temporary challenges, Ethereum displays growing investor interest.
