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Markets rally as recession fears ease: Take action or stay patient?
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Bitcoin & Ether Outlook: $49M Inflows into Ethereum ETFs After the Recent Selloff

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Analysts Notebook joined discussion · Aug 7 08:05
$Bitcoin (BTC.CC.CC)$ and $Ethereum (ETH.CC.CC)$ are recovering after hitting their lowest levels in six months on Monday, during the first significant test of recently launched crypto exchange-traded funds (ETFs). Over a 24-hour period, about $370 billion was erased from the market cap of all digital tokens, with Bitcoin dropping below $50,000 and Ether experiencing its largest single-day drop in three years. This sell-off was part of a broader market decline affecting global stocks.
What's different this time is the impact on a larger number of investors due to the newly launched spot crypto ETFs, which started trading in January for Bitcoin and last month for Ether. Many investors are encountering crypto volatility for the first time. Despite the turmoil, net flow data from CoinGlass shows that most ETF holders have remained invested. There were net outflows of around $169 million across all spot Bitcoin ETFs, but the popular IBIT fund by BlackRock saw no redemptions. Monday's outflows are minimal compared to the more than $50 billion market cap of the funds.
According to data from Bloomberg, Ether ETF investors bought the dip with a net inflow of $49 million across nine products, more than compensating for the outflows from the Grayscale Ethereum Trust.
Insights From Analysts
$JPMorgan (JPM.US)$analysts noted that spot Bitcoin ETF volumes more than doubled on Monday to over $5.2 billion, surpassing Friday's figures and eclipsing the January debut. Additionally, more than $49 million was added to spot Ether ETFs, with trading volumes significantly rebounding.
$AllianceBernstein Holding (AB.US)$'s digital asset analysts highlighted that Bitcoin ETFs are now "highly liquid," trading around $2 billion daily, making it easier to invest compared to previous cycles. They also expect more approvals for Bitcoin investments in the third and fourth quarters, which will facilitate further asset allocation to Bitcoin.
Sean McNulty, director of trading at Arbelos Markets, observed that investors are buying the dip but remain cautious due to concerns about a potential larger deleveraging process. Coinglass data revealed that total liquidations in crypto bets reached about $1.1 billion on Monday, one of the largest amounts since early March. Despite this, some traders are optimistic about a quick recovery. Rich Rosenblum, co-CEO and co-founder of GSR Markets, noted that the Bitcoin community was very bullish just nine days ago and believes Bitcoin could swiftly rally back to over $70,000.
Bitcoin Bulls Predict New Highs After Worst Rout Since FTX Collapse
Bitcoin proponents are reaffirming their predictions for new all-time highs for the cryptocurrency despite a recent drop of up to 20% between Sunday and Monday. After falling below $50,000 over the weekend, the price has since recovered by about $6,000, leaving it down 14% over the past week. Despite this being Bitcoin's worst week since the FTX exchange collapse in 2022, bullish analysts still anticipate a rally that could push the price above $100,000 by the end of 2024. Bitcoin's previous all-time high was $74,000 in March. Martin Leinweber from MarketVector maintains that the potential for new highs in 2024 remains strong.
If we can regain the old highs around $72,000, I think it's not unrealistic to see bitcoin between $80K and $100K."
Another bull Mark Connors, head of macro strategy at Onramp Bitcoin, said Tuesday that a prediction he made in March that bitcoin will hit $110,000 in 2024 remains unchanged. Similarly, Matt Hougan, chief investment officer at Bitwise Asset Management, expects new all-time highs for Bitcoin later this year despite the recent pullback. Hougan noted that Bitcoin investors tend to be long-term holders rather than quick sellers. Amid this optimism, there are also renewed questions about whether Bitcoin is still performing as well as its supporters claim.
Source: CNBC, Bloomberg, CoinDesk
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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