By Key Points
- Bitcoin’s historic $100K rally stalls after Trump’s election victory.
- BTC ETFs face $671.9M in outflows over four consecutive days.
- Ethereum gains investor attention with $53.6M in ETF inflows.
- Market braces for potential slowdown ahead of Trump’s inauguration.
Bitcoin’s remarkable journey past the $100,000 milestone has hit a roadblock, as Bitcoin ETFs outflows dominate market headlines.
Over the past four days, ETF outflows have reached a staggering $671.9 million, raising questions about the sustainability of the king coin’s recent surge.
This trend has sparked significant discussion about institutional investor behavior and what lies ahead for Bitcoin ETFs.
Bitcoin ETFs bleed funds as BTC’s $100K rally stalls post-electionhttps://t.co/iHrieG6AbY
— John Morgan (@johnmorganFL) December 25, 2024
Massive Bitcoin ETFs Outflows Signal Waning Enthusiasm
Bitcoin ETFs have experienced a sharp reversal in momentum since December 19, despite Bitcoin achieving an all-time high of $108,000 earlier this month.
On December 24 alone, Bitcoin ETFs recorded outflows of $338.4 million, with some of the biggest names in the industry-leading the decline.
- BlackRock’s IBIT ETF: Suffered the largest single-day outflow of $188.7 million.
- Fidelity’s FBTC ETF: Lost $83.2 million in investments.
ARK 21Shares’ ARKB ETF: Saw withdrawals of $75 million.
Amid this downturn, Bitwise’s BITB ETF emerged as an outlier, recording inflows of $8.5 million. This exception suggests that while some investors are pulling back, others are still placing selective bets on Bitcoin ETFs.
The spike in Bitcoin ETFs outflows correlates with a notable drop in Bitcoin’s price to $94,000 on December 24.
Market analysts have attributed this decline to fading institutional enthusiasm, driven by concerns over the longevity of the recent rally.
Historical trends indicate that such post-election surges often lose steam as inauguration day approaches.
Ethereum Gains Traction as Bitcoin ETFs Outflows Persist
As Bitcoin ETFs outflows make headlines, Ethereum has started to shine as a stable investment choice. Spot Ethereum ETFs recorded inflows of $53.6 million over the same period, highlighting a growing shift in investor sentiment.
With Ethereum’s price holding steady at around $3,400, it is increasingly viewed as a less volatile alternative during turbulent market conditions.
Meanwhile, Bitcoin demonstrated resilience on December 25, climbing to $98,052.98—an increase of 4.18% in 24 hours.
While this recovery is promising, the broader market remains cautious, particularly as Bitcoin approaches the critical $99,000 resistance level.
Why Bitcoin ETFs Outflows Matter
The surge in Bitcoin ETFs outflows reflects more than just a temporary market correction. Institutional investors, a driving force behind Bitcoin’s recent success, appear to be reassessing their strategies.
Historical data from Bloomberg and Macrobond Financial shows that markets, including cryptocurrencies, often rally after U.S. presidential elections but tend to slow down once the President-elect takes office.
With Donald Trump set to be inaugurated as the 47th U.S. President on January 20, this historical precedent has raised concerns about whether Bitcoin can maintain its upward momentum.
A Tale of Two Cryptocurrencies
While Bitcoin ETFs struggle to retain investor confidence, Ethereum’s steady performance has solidified its appeal.
The divergence between Bitcoin ETFs outflows and Ethereum ETF inflows suggests a shift in the broader crypto landscape. Investors may be prioritizing stability and utility, hallmarks of Ethereum’s ecosystem, over Bitcoin’s more speculative appeal.
As the market moves toward the new year, Bitcoin ETFs will remain a focal point for investors.
Whether Bitcoin can break past its resistance level and reignite institutional interest, or if Ethereum continues to capture the spotlight, will shape the narrative for crypto markets in 2025.
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