The cryptocurrency market, which recently appeared stagnant, is gradually showing signs of recovery. While not a dramatic surge, momentum is building. Massive outflows have subsided, large investors, often referred to as whales, are re-emerging, and even exchange-traded funds (ETFs) are once again attracting interest. Amidst cautious optimism and encouraging technical indicators, it's clear that a shift is occurring, and Bitcoin is not the only digital asset experiencing this change, with Ethereum and Solana also attempting to break through.
In brief
- •Bitcoin ETFs have recorded 70 million dollars in inflows following four weeks of significant outflows.
- •Ethereum has outperformed Bitcoin this week, with 312 million dollars invested in its ETF funds.
- •BlackRock has experienced losses, but Fidelity and ARK have compensated with substantial positive inflows.
- •Solana has broken its streak of gains but is showing a timid rebound with 5.4 million dollars in inflows.
Bitcoin Becomes Desirable Again: Whales Change Course
After four consecutive weeks of outflows, totaling 4.35 billion dollars in losses, Bitcoin ETFs are showing signs of recovery. Last week, 70 million dollars flowed back into these funds. Although the amount is modest, its symbolic significance is considerable, indicating the return of major investors and a positive shift in market trends.
Bitcoin's Relative Strength Index (RSI) is approaching oversold territory, which could signal a potential market bottom. Several prominent players have reopened long positions, suggesting a possible rebound towards the 100,000 to 110,000 dollar range.
While BlackRock's IBIT ETF experienced outflows of 113.7 million dollars, Fidelity and ARK 21Shares compensated with inflows of 77.5 million and 88 million dollars, respectively. The overall market dynamic may be more diversified, but it is undeniably real, with doubt receding and conviction returning.
BlackRock, ETH, and the Return of the Crypto Market Titans
BlackRock's IBIT ETF has become its most profitable product in less than a year, generating 245 million dollars in annual fees and already managing 70 billion dollars in assets. This fund holds 3.9% of the total Bitcoin supply, demonstrating that institutional players are no longer mere observers in the crypto space.
This week, Ethereum has surprised the market. The ETHA fund attracted 257.2 million dollars in just four days, accounting for 82% of all inflows into ether ETFs. The weekly total reached 312.6 million dollars, reversing three weeks of decline, including a significant drop of 728.6 million dollars in mid-November.
Current prices do not yet fully reflect the improvement in the macroeconomic context. André Dragosch from Bitwise Europe analyzes that if investors are reassessing their expectations, Bitcoin's potential for upside is currently underestimated.
Ether ETFs now hold a total of 19.15 billion dollars in assets, representing 5.2% of Ethereum's total market capitalization. This organized comeback, though quiet, is making a significant impact on market flows.
Crypto: Solana Slows, ETFs Stir, Confidence Emerges
Solana recently broke a streak of 21 days of positive inflows with an outflow of 8.1 million dollars on Wednesday. However, by Friday, the trend reversed, with 5.4 million dollars flowing back into the asset. Grayscale (4.33 million dollars) and Fidelity (2.42 million dollars) fueled this rebound, despite 21Shares recording 1.4 million dollars in withdrawals.
This market hesitation is not an isolated event. On Friday alone, 3.4 billion dollars were traded on Bitcoin ETFs, and 1.11 billion dollars circulated on Ethereum ETFs, indicating active trading despite recent market turbulence.
James Butterfill, a researcher at CoinShares, noted that the previous month represented the third-largest series of withdrawals since 2018, with a 36% decrease in assets under management.
The cryptocurrency industry continues to face challenges, but it is demonstrating resilience and movement. Financial products, often perceived as detached, are now serving as crucial indicators of a market seeking revival.
Key Takeaways This Week
- •70 million dollars in net inflows for Bitcoin ETFs after four weeks of negative performance.
- •Current Bitcoin price is approximately 90,902 dollars, showing a slight decrease after peaking at 91,000 dollars.
- •312.6 million dollars were injected into Ethereum ETFs, with five consecutive days of positive inflows recorded.
- •5.4 million dollars in inflows for Solana, despite an interruption in its previous positive streak.
- •245 million dollars in annual revenues are generated by BlackRock's IBIT ETF.
At the current pace, a key question remains: has Bitcoin finished its downward trend? A well-known analyst has recently identified a setup for an explosive move. If inflows continue to confirm this trend, BTC could potentially regain altitude more rapidly than anticipated. The signals are aligning, raising the question of whether the market is ready for a new ascent.