According to SoSoValue statistics, U.S.-listed Bitcoin exchange-traded funds (BTC ETFs) saw net withdrawals of $71 million on Thursday for the third day in a row, indicating the departure of professional funds from the market.
Amidst indications of decreased demand and net outflows from significant ETFs, including BlackRock’s IBIT, Bitcoin saw a dip, closing below $59,000 with a weekly loss of more than 3.5%.
A greater bitcoin price premium on Coinbase and a rise in deposits from foreign exchanges to Coinbase, however, indicate a pickup in interest among US retail investors.
Following Labor Day, traders expect higher volatility due to impending political and economic data.
Bitcoin (BTC) continued its week-long decline to around $59,000 early on Friday due to profit-taking following last week’s surge, with significant exchange-traded funds (ETFs) reporting net outflows in the face of declining demand.
According to CoinGecko data, Bitcoin lost little more than 1% in the last day, taking its weekly losses to more than 3.5% and putting it on course to close August at an 8% haircut (with one day remaining). As previously reported, the overall growth in demand for bitcoin is still low and has even gone negative in recent weeks.
According to SoSoValue statistics, U.S.-listed Bitcoin exchange-traded funds (BTC ETFs) saw net withdrawals of $71 million on Thursday for the third day in a row, indicating the departure of professional funds from the market.
Grayscale’s GBTC at $22 million and Fidelity’s FBTC at $31 million were the greatest losers on Thursday. Traders were taken aback, nevertheless, when $13 million was taken out of BlackRock’s IBIT, the largest bitcoin fund in the world based on assets under management, for the second time in history.
As a result, according to exchange statistics, demand from American retail investors has soared as the cost of bitcoin premium on the Coinbase trade has risen to its highest point since July, as disclosed in a research released on Thursday by on-chain analytics company CryptoQuant.
Furthermore, bitcoin is once again moving from foreign exchanges to Coinbase, indicating rising interest from investors in the US and a trend typically associated with higher prices.
In the meanwhile, traders anticipate further market volatility in the upcoming weeks. Despite encouraging indications of a rate decrease and support from Republican contender Donald Trump, Bitcoin has mainly moved sideways over the past week, which has affected sentiment for the larger cryptocurrency market.
Crypto had a quiet week with BTC and ETH staying within +/- 1.5% of where they were last week. Augustine Fan, head of analytics at SOFA, stated in a weekly client note that ETF inflows are still modest.
After US Labor Day, we anticipate stronger market activity leading up to next week’s NFP, which will launch a busy Fall season. Political news will also likely become more significant, especially in light of the most recent announcements from Harris and Waldz regarding their aggressive tax increases.
Traders at Singapore-based QCP Capital, who expressed this opinion in a Telegram broadcast, predicted turbulent price activity going forward, despite potential market instability.
The market is still apprehensive about the downside, as seen by the fact that risk reversals until October are still biased towards puts in both BTC and ETH, according to QCP. “We anticipate that market volatility will continue its downward trend in the run-up to next week’s non-farm payroll report as the market braces itself for probable rate cuts by the Fed.”
As previously reported, Federal Reserve Chair Jerome Powell has indicated a shift toward lower borrowing costs starting next month. Since easy access to capital encourages expansion in risky industries, such measures have historically bolstered positive sentiment among traders.
As September approaches, QCP continued, “we expect rates to keep chopping within the range with no catalysts in the near term.”
As bulls unable to overcome key resistance, Bitcoin falls back to $59K; AI cryptos lead losses
AI-focused tokens fell 7%–10% in the wake of Nvidia’s post-earnings collapse, including FET, Render’s RNDR, and Bittensor’s TAO.
During Thursday’s U.S. market session, Bitcoin’s (BTC) effort at a rebound failed once more, with the price reverting to below $59,000 after earlier rising above $61,000.
BTC, which was up 0.6% in line with the general market CoinDesk 20 Index, was still hanging onto some of the gains it had made over the previous 24 hours. The price of ethereum (ETH) was fallen 0.5% and was just barely holding above $2,500.
Cryptocurrencies with an emphasis on artificial intelligence saw the most losses, trailed by the 6.4% decline in chip manufacturer Nvidia (NVDA) following the company’s quarterly reports on Wednesday night. For the day, the native tokens of Bittensor (TAO), Artificial Superintelligence Alliance (FET), and Render (RNDR) decreased by 7%–10%.
The tech-heavy Nasdaq led U.S. stocks to give up their early-day gains, as they fell by 0.3% forty minutes to the closing bell, having risen by more than 1.5% early in the day.
As noted by pseudonymous cryptocurrency analyst Skew, bulls would have to push prices above $61,000, above significant short-term average movements on the 4-hour period, in order to have a serious chance of rallying to the upper half of the range.
The price activity indicates that the rapid rebound from the early August collapse to below $50,000 is still not materializing, and that more consolidation is ahead for the crypto markets. Since breaking its all-time high of $73,000 in March, the largest cryptocurrency has been trapped in a downward trend, experiencing lower highs and lower lows.
