Bitcoin ETF Inflows Continue; Ethereum ETFs Face Extended Outflows
Bitcoin ETF Inflows Surge – Bitcoin (BTC) has been trading predominantly between $59,000 and $61,000 in recent weeks. Traders are closely watching the upcoming Jackson Hole symposium, scheduled for Friday, for potential market-moving comments that could influence the price of Bitcoin and other cryptocurrencies. During Asian trading hours, Bitcoin briefly surpassed $61,000 but has mostly remained within the $59,000 to $61,000 range.
Major Cryptocurrencies Show Minimal Movement
While Bitcoin’s price shows some fluctuation, most major cryptocurrencies have seen minimal changes. Ethereum (ETH), Solana (SOL), BNB Chain’s BNB, and XRP have moved less than 2% over the past 24 hours. The broad-based CoinDesk 20 (CD20), which tracks the largest tokens by market capitalization, increased by 1.7%.
Cardano and Avalanche Stand Out
Cardano’s ADA experienced a 3% gain, while Avalanche’s AVAX saw a significant 10% jump. This surge in AVAX’s price follows its recent inclusion as a network option for Franklin Templeton’s OnChain U.S. Government Money Market Fund (FOBXX). FOBXX, which started trading in 2021, became the first money-market fund to utilize a public blockchain for recording transactions and ownership.
U.S. Bitcoin ETFs See Continued Inflows
Spot Bitcoin exchange-traded funds (ETFs) in the U.S. recorded $64 million in inflows, extending a winning streak to six consecutive days. Among these, BlackRock’s IBIT ETF led with the highest inflows, totaling $75 million. Despite this positive trend, some firms are noting a general slowdown in the rate of inflows, which they interpret as a bearish signal.
Ethereum ETFs Face Record Outflows
In contrast, Ethereum ETFs have faced significant outflows, extending a record streak of six days. These products lost over $800,000 on Thursday, bringing the cumulative outflows to more than $458 million since their launch on July 23. This reflects a bearish sentiment towards Ethereum-related products.
Market Reactions to Federal Reserve’s Policies
The market is anticipating comments from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. Previous concerns about the Fed delaying rate cuts due to weaker U.S. labor market data had caused a temporary selloff. However, the release of July’s FOMC minutes, which revealed some policymakers were open to rate cuts, eased these concerns.
Outlook and Market Sentiment
The expectation is that Powell will confirm a shift towards lower borrowing costs next month, a move historically seen as favorable for bullish sentiment. Access to cheap money often stimulates growth in riskier sectors. However, some experts, such as Augustine Fan from SOFA, caution that Powell might aim to provide himself with flexibility against the anticipated rate cuts. Despite this, Jackson Hole has traditionally been seen as a “risk-positive” event, and traders may seize buying opportunities on dips.
As the market awaits further developments, the Jackson Hole symposium remains a critical event for shaping the future direction of Bitcoin and broader cryptocurrency investments.
FAQ: Bitcoin and Cryptocurrency Market Update
Why is Bitcoin trading between $59,000 and $61,000?
Bitcoin has been trading within this range due to market uncertainty and anticipation surrounding the upcoming Jackson Hole symposium. Traders are waiting for potential comments from the Federal Reserve that could influence market direction.
What impact did the Jackson Hole meeting have on Bitcoin and other cryptocurrencies?
The Jackson Hole meeting, scheduled for later on Friday, is expected to provide insights into the Federal Reserve’s monetary policy, which could impact Bitcoin and other cryptocurrencies. Market participants are closely watching for any indications of future rate changes or economic policies that might affect asset prices.
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