Ethereum

FOMC

Bitcoin

Digital asset investment products recorded a trend reversal, with $436 million in <a href="https://www.thecoinrepublic.com/price-prediction/bitcoin/">Bitcoin</a> inflows after a period of outflows. Major factors contributing to inflows include shifting market perception. Especially the expectations of a 50 basis point cut in interest rates on September 18th. 
As a report from CoinShares pointed out, this sentiment change came after Bill Dudley, the ex-New York Federal Reserve President, made certain statements. Despite ETF trading volume standing at $8 billion, far lower than the yearly average of $14.2 billion, the region witnessed healthy inflows. 
The largest amount of $416 million was reported in the United States. Switzerland and Germany contributed $27 million and $10.6 million, respectively. However, Canada reported small outflows of $18 million in the same period, showing it was not as big of an investor hub as the USA in 2012. 
<h2 class="wp-block-heading" id="h-record-inflows-mark-turnaround-for-bitcoin-etfs">Record Inflows Mark Turnaround for Bitcoin ETFs</h2> 
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, <a href="https://www.thecoinrepublic.com/2024/07/14/spot-bitcoin-etfs-record-310m-inflows-best-since-early-june/">spot Bitcoin ETFs</a> 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. 
These changes indicate that more investors are becoming bullish on Bitcoin and its future price appreciation despite the increased risk of market fluctuations. Market onlookers are still hopeful, but events like Token2049 and the FOMC meeting are scheduled for next week. 
<h2 class="wp-block-heading" id="h-ethereum-faces-19m-outflows-amid-profit-concerns">Ethereum Faces $19M Outflows Amid Profit Concerns</h2> 
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. 
<h2 class="wp-block-heading" id="h-volatility-post-trump-assassination-attempt">Volatility Post Trump Assassination Attempt</h2> 
The cryptocurrency market witnessed increased volatility on Monday after the second assassination attempt on the ex-US president, <a href="https://www.thecoinrepublic.com/2024/09/14/is-donald-trumps-crypto-project-a-pre-election-power-move/">Donald Trump</a>. 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. 
One of the possible approaches is the zero-cost ERKO Seagull trade. It seems rather promising in terms of potential gain and risk. This strategy involves purchasing a 70k Bitcoin call option with a knock-out of 100k while selling a 50k put option expiring in November 2024. 
The post <a href="https://www.thecoinrepublic.com/2024/09/17/bitcoin-funds-gain-436m-as-ethereum-faces-19m-outflow/">Bitcoin Funds Gain $436M as Ethereum Faces $19M Outflow</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.

Bitcoin Funds Gain $436M as Ethereum Faces $19M Outflow

Table of Contents

Thecoinrepublic.com

Other articles published on Sep 17, 2024

Dragonfly VC raising $500m in fourth funding round

RISE, the Gigagas Layer 2, announces its $3.2M Seed Round

Dogecoin Segera Naik, Indikator Teknikal Utama Beri Sinyal Positif

Ethereum and Bitcoin Investors Focus on This Coin for 200x Gains

COTI Launches L2 Testnet with Strong Ecosystem Support Boosting Affordable Privacy Solutions

Red Market Reveals True Ethereum L2 Users: In-Depth Research

Join our free newsletter for daily crypto updates!