Key Points
- Bitcoin surpassed $100K, but experienced four consecutive days of ETF outflows.
- Ethereum gained investor attention with stable prices and $53.6M ETF inflows.
After Donald Trump’s victory in the US Presidential elections, Bitcoin experienced a significant bull run, breaking the $100,000 milestone and reaching a peak of $108,000. This was accompanied by substantial inflows into Bitcoin exchange-traded funds (ETFs), indicating strong investor interest.
Bitcoin ETFs Face Outflows
However, the momentum shifted as Bitcoin ETFs saw four consecutive days of outflows starting from 19th December, amounting to a considerable $671.9 million in withdrawals. Major players such as BlackRock’s IBIT, Fidelity’s FBTC, and ARK 21Shares’ ARKB led the outflows. Amidst this trend, Bitwise’s BITB was the exception, recording inflows worth $8.5 million. This shift from inflows to outflows coincided with a significant drop in Bitcoin’s price to $94K on 24th December.
This decline comes in the wake of predictions of a potential market slowdown. Historical data suggests that the current rally may lose momentum following Trump’s inauguration on 20th January 2025. However, Bitcoin’s latest price movements indicate a potential shift, with BTC trading at $98,052.98, reflecting a 4.18% surge in the past 24 hours.
Ethereum Gains Investor Traction
On the other hand, Ethereum has been gaining investor interest. Ethereum ETFs recorded inflows of $53.6 million, indicating a growing investor preference for Ethereum over Bitcoin. Ethereum’s price remains stable around $3,400, while Bitcoin is inching closer to the critical $100,000 threshold. Despite the market uncertainty, signs of recovery hint at a strong year-end finish.
