Bitcoin and Ethereum Market Update

Bitcoin surged past $100K but faced four consecutive days of ETF outflows.
Ethereum gains investor traction with stable prices and $53.6M ETF inflows.

Following Donald Trump’s victory as the 47th President of the United States, Bitcoin (BTC) experienced an unprecedented bull run, surpassing the milestone $100,000 mark for the first time with an all-time high of $108,000.

This surge was accompanied by massive inflows into spot BTC exchange-traded funds (ETFs), signaling strong investor enthusiasm.

Bitcoin ETFs Face Outflows

Nonetheless, the momentum took a sudden turn. Bitcoin ETFs have recorded four consecutive days of outflows starting from December 19, with withdrawals totaling $671.9 million.

According to the latest data from Farside investors, as of December 24, BTC ETFs saw significant outflows totaling $338.4 million, primarily from major players:
– BlackRock’s IBIT led with $188.7 million.
– Fidelity’s FBTC followed with $83.2 million.
– ARK 21Shares’ ARKB had $75 million outflow.

Interestingly, while other ETFs reported zero activity, Bitwise’s BITB emerged as an exception, recording inflows worth $8.5 million amid the broader trend of withdrawals.

The transition from inflows to outflows in Bitcoin ETFs coincided with a notable price drop, with Bitcoin slipping to as low as $94K on December 24, reflecting waning institutional interest.

Potential Reasons Behind the Decline

This decline comes amidst growing predictions of a potential market slowdown. Historical data on U.S. election year trends suggests that the current rally may lose momentum after Trump’s inauguration on January 20, 2025.

Bloomberg and Macrobond Financial historical analysis indicates a recurring trend in U.S. markets where assets like stocks and cryptocurrencies tend to experience a post-election rally that diminishes once the President-elect assumes office. This raises concerns about Bitcoin’s ability to sustain its upward trajectory in the months following the inauguration.

Despite these concerns, Bitcoin’s latest price movements indicate a potential shift. According to the latest data from CoinMarketCap, BTC was trading at $98,052.98, reflecting a 4.18% surge in the past 24 hours. This uptick could hint at a reversal of fortunes for Bitcoin ETFs, which have faced challenges recently.

Ethereum Takes the Spotlight

Meanwhile, attention has shifted to Ethereum (ETH). Spot Ethereum ETFs recorded inflows of $53.6 million, underscoring a growing preference among investors for Ethereum over Bitcoin in the current market climate.

On the price front, Ethereum maintains stability around $3,400, while Bitcoin inches closer to the critical $100,000 threshold, rallying toward its $99,000 resistance level. Thus, while the market remains uncertain, signs of recovery hint at a strong year-end finish.