- Record Inflows Mark Turnaround for Bitcoin ETFs
- Ethereum Faces $19M Outflows Amid Profit Concerns
- Volatility Post Trump Assassination Attempt
Digital asset investment products recorded a trend reversal, with $436 million in Bitcoin inflows after a period of outflows.
Record Inflows Mark Turnaround for Bitcoin ETFs
Bitcoin alone was the primary recipient of the investments, with $436 million invested into the asset class after it saw over $1.18 billion in outflows. This is, however, a welcome change after a series of 10 consecutive days of losses, boosted by investor confidence. Interestingly, spot Bitcoin ETFs recorded net buys of $263m on Friday, the highest single-day inflow since the 22nd of July. Meanwhile, short-Bitcoin funds experienced $8.5 million in outflows, which came after three weeks of inflows, signaling a change of sentiment.
Ethereum Faces $19M Outflows Amid Profit Concerns
On the other hand, Ethereum marked $19 million in outflows, indicating that the currency has not performed as well as Bitcoin. This negative trend raises questions about the profitability of Layer 1 solutions, which has affected Ethereum’s performance. There is evidence that investors are no longer as interested in investing in Ethereum, mainly due to doubts about the platform’s growth potential. But Solana went the other way, recording its fourth week of accumulation with $3.8 million in inflows. It should be noted that blockchain equities also attracted investors with $105 million flows, largely owing to new ETF products in the US market.
Volatility Post Trump Assassination Attempt
The cryptocurrency market witnessed increased volatility on Monday after the second assassination attempt on the ex-US president, Donald Trump. This event and the liquidation of $70 million in long positions before the Asia trading session resulted in the market’s decline. Due to the continued thin trading, the bearish pressure picked up pace, QCP Capital noted. It is noteworthy that at the time of Trump’s first assassination attempt in July, Bitcoin rose by 13.8% in a week. Market sentiment is still mixed as we head into several important events this week, FOMC meeting being one of them, with the expectations of a 50-bp interest rate cut rising to 59%. This uncertainty is still causing volatility. The implied volatility for BTC increased by 8 points, and that of ETH increased by 20 points on Friday. QCP Capital said this is a good chance for traders to buy back in for a potential correction in Q4.
Such a change in market sentiment might suggest that investors are once again becoming confident in Bitcoin's future, despite the increased risk of market fluctuations. Meanwhile, questions about Ethereum's growth potential remain open.
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