Bitcoin spot ETFs recorded a net outflow of $79.09 million on Tuesday, marking the first outflow after a consistent inflow streak over the past seven days.
What Happened: BlackRock‘s IBIT ETF, showed a gain of $42.9 million on Oct. 22, while ARK Invest‘s ARKB ETF saw a substantial outflow of $134.7 million. These figures indicate mixed sentiment across Bitcoin-focused funds, despite the overall market outflow.
Ethereum spot ETFs showed resilience with a net inflow of $11.9 million on the same day, pointing to contrasting trends between the two leading cryptocurrencies, according to data from SoSo Value.
Fidelity's FETH ETF recorded the most significant net inflow of $11.9 million, helping Ethereum spot ETFs maintain a positive momentum despite Bitcoin's outflow.
Cumulative inflows for Ethereum ETFs have reached $1.2 billion, further underscoring Ethereum’s relative strength in the current environment.
In a note sent to Benzinga, according to Illia Otychenko, Lead Analyst at CEX.IO, Bitcoin's BTC futures market is seeing signs of a pullback.
“Bitcoin futures have seen a slight correction in open interest, signaling that some traders are unwinding positions,” said Otychenko, attributing this move to increasing caution among market participants.
Funding rates have also decreased, reflecting less bullish sentiment as traders become less willing to pay premiums for holding long positions.
The plateauing of futures volumes suggests that the market is taking a pause, awaiting fresh catalysts to drive momentum.
Bitcoin's price has remained largely range-bound, fluctuating between $66,700 and $67,800 over the past two days.
Also Read: Bitcoin Spot ETF Sees $294M Inflow, Extending 7-Day Streak Amid Growing Market Confidence
Momentum indicators, such as the MACD and RSI, suggest that an upside breakout could be on the horizon, though higher timeframes hint at the possibility of a price correction if the consolidation range is breached.
A potential downward break could see Bitcoin quickly drop to $65,400 due to a lack of significant volume clusters in this range.
The upcoming U.S. elections are also affecting market sentiment.
Why It Matters: QCP Capital noted that the race between Donald Trump and Kamala Harris is influencing financial markets.
“Trump has started to extend his lead over Kamala in betting markets, and key swing states are now polling Republican,” QCP reported, highlighting how Trump’s crypto-friendly stance could be contributing to Bitcoin’s recent performance.
Trump’s potential policies, such as tariff increases and tax cuts, are driving the U.S. dollar higher and pushing U.S. bond yields up, with 2-year Treasury yields surpassing 4% again.
The Bitcoin futures market has responded to these developments with a record high open interest of $40.5 billion across exchanges.
However, broader market caution persists, with traders closely watching the upcoming Non-Farm Payroll (NFP) report, which could influence Federal Reserve policy decisions and significantly impact market dynamics.
As the crypto market navigates these shifts, industry experts will gather at Benzinga's Future of Digital Assets event on Nov. 19 to discuss these evolving trends.
Read Next:
Image: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
