- Bitcoin surged past $100K but faced four consecutive days of ETF outflows.
- Ethereum gains investor traction with stable prices and $53.6M ETF inflows.
As a seasoned analyst with over two decades of experience navigating the dynamic world of finance and markets, I have witnessed numerous bull runs and bearish phases. The recent surge of Bitcoin [BTC] beyond $100K was undeniably reminiscent of Donald Trump’s victory as the 47th President of the United States in 2016 – a time when the cryptocurrency market experienced an unprecedented bull run.
After Donald Trump’s election as the 47th U.S. President, Bitcoin [BTC] saw a remarkable surge, breaking its previous records. For the first time ever, it crossed the $100,000 mark and peaked at an astonishing high of $108,000.
This increase was followed by significant investments into Bitcoin exchange-traded funds (ETFs) on the spot market, indicating high levels of investor interest and excitement.
Bitcoin ETFs face outflows
Despite the positive trajectory I’d been experiencing, things seem to have unexpectedly shifted gears. Over the past four days, starting from December 19th, I’ve seen Bitcoin ETFs experience a series of outflows. To be precise, a substantial $671.9 million has been withdrawn from these funds in this period.
Based on the most recent figures provided by Farside Investors, it’s reported that Bitcoin Exchange-Traded Funds (ETFs) experienced substantial withdrawals amounting to approximately $338.4 million on December 24th. These withdrawals were mainly initiated by major market players.
As a crypto investor, I’ve noticed some significant movements in the industry lately. Leading the way was BlackRock’s IBIT, with a substantial outflow of approximately $188.7 million. Not far behind, Fidelity’s FBTC saw an outflow of about $83.2 million, and ARK 21Shares’ ARKB followed suit with an outflow of around $75 million. These shifts in investment highlight the dynamic nature of the crypto market.
Notably, unlike other ETFs that saw no trading activity, Bitwise’s BITB bucked the trend and experienced inflows totaling $8.5 million. This sets it apart from the prevailing pattern of outflows.
As Bitcoin ETFs shifted from accumulating (inflows) to distributing (outflows), this change coincided with a substantial decrease in Bitcoin’s price, dropping down to around $94,000 on the 24th of December. This movement suggests a decline in institutional enthusiasm for Bitcoin.
What could be the possible reason behind this?
As a crypto investor, I must acknowledge that the current dip might be attributed to increasing speculations about an imminent market downturn.
Data from past U.S. election years indicates a possible slowdown in the current trend after Donald Trump’s inauguration, which is scheduled for 20th January 2025.
Analysis from Bloomberg and Macrobond Financial has consistently shown that following U.S. elections, there tends to be an upward surge in the performance of assets such as stocks, cryptocurrencies (including Bitcoin), suggesting a common pattern in the U.S. markets.
Nevertheless, the drive frequently weakens when a new president takes office, which raises doubts about the market’s capacity to maintain its growth trend. This uncertainty also stirs questions regarding Bitcoin’s potential performance in the timeframe following Trump’s swearing-in ceremony.
As an analyst, I’ve been keeping a close eye on Bitcoin’s recent price fluctuations, and it appears that we might be witnessing a significant shift. According to the most recent data from CoinMarketCap, Bitcoin was trading at approximately $98,052.98, representing a 4.18% increase over the past 24 hours. This uptick could potentially signal a new direction for this digital currency.
This increase might signal a change in Bitcoin ETFs’ luck, as they’ve encountered tough times lately.
Ethereum takes the spotlight
Currently, attention is turning towards Ethereum [ETH], as shown by the surge in investments into Ethereum Exchange-Traded Funds (ETFs), totaling $53.6 million. This trend suggests that more investors are favoring Ethereum over Bitcoin in the present market situation.
Regarding pricing, Ethereum holds steady near the $3,400 mark, whereas Bitcoin approaches the crucial $100,000 barrier, pushing against its resistance at around $99,000.
Thus, while the market remains uncertain, signs of recovery hint at a strong year-end finish.
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2024-12-25 15:45