The cryptocurrency market continues to exhibit signs of volatility, with mixed performance across the board. Bitcoin spot ETFs saw a net inflow of $28.72 million on September 9th, while Ethereum spot ETFs experienced their fifth consecutive day of outflows. This contrasting performance reflects the ongoing uncertainty surrounding the digital asset landscape.
Within the Bitcoin ETF market, Grayscale’s GBTC experienced an outflow of $22.76 million, while Fidelity’s FBTC countered with a substantial inflow of $28.59 million, contributing to the overall positive flow for Bitcoin funds. However, despite the positive inflows, analysts warn that Bitcoin remains firmly in bear market territory until it surpasses the critical 21-week moving average of $61,100.
The situation appears less optimistic for Ethereum. Ethereum spot ETFs recorded a total of $5.20 million in net outflows on Monday, with Grayscale’s ETHE leading the exodus with $22.64 million in outflows. Although this was partially offset by inflows to other Ethereum ETFs, including $7.97 million into the Grayscale Ethereum Mini Trust ETH, the overall trend remains negative. The total daily trading volume for the nine Ethereum ETFs decreased to $124.51 million on Monday, down from $210.43 million the previous Friday. The cumulative net flows for these funds remain in negative territory, with $573.49 million in net outflows to date.
QCP Capital highlights the dominance of macro uncertainty in the cryptocurrency market, with the 30-day correlation to the MSCI World Equity Index reaching a near two-year high of 0.6. The firm notes that the options market is pricing in a potential movement of more than 3.3% from the current Bitcoin spot price of $56,800 by tomorrow’s expiry, following the presidential debate. “While Bitcoin is often seen as the ‘Trump trade’ due to his vocal support for crypto, we’re watching closely for any surprising positive crypto mentions from Kamala Harris during her campaign.”
According to a 10x Research report, positive sentiments around Bitcoin could push it back above $60,000, citing three technical reversal indicators recovering from oversold levels. However, they emphasize that Bitcoin remains in bear market territory as long as it stays below the critical 21-week moving average of $61,100. “The upcoming Harris-Trump debate and the anticipated lower CPI data announcement on Wednesday are serving as significant catalysts for potential upward momentum this week,” 10x Research stated.
With these market dynamics unfolding, industry participants are eagerly anticipating Benzinga’s Future of Digital Assets event on November 19th. This event will bring together experts who will dissect these trends and provide insights into the future of cryptocurrency investments and the evolving ETF landscape.
