Bitcoin (BTC) and Ethereum (ETH), the world’s leading cryptocurrencies, are showing visible differences following the launch of their spot ETF products. While Bitcoin has increased in value after the debut of its ETF in January, Ethereum has experienced a decline.
This divergence in Bitcoin and Ethereum price action offers a unique perspective on the crypto market’s current condition.
Market Volatility Hits Bitcoin and Ethereum Post ETF Launch
Market analyst Andrew noted that Bitcoin’s price has jumped by more than 30% since the launch of its spot ETF. On the contrary, Ethereum has experienced a 30% slump since the approval of its ETF in July. This divergence shows that Bitcoin thrives while Ethereum is bleeding post-ETF launch.
BTC ETFs started trading on January 11 when the price of the coin was trading for $46,121. However, recent movement in Bitcoin and Ethereum coincides with intense market fluctuations. The market suffers from a bland performance, with BTC trading at lows of $55,100.
The digital asset decreased 4.16% in the past 24 hours and 7% in the past week. Still, the trading volume surged 23% in the past 24 hours to $38 billion, suggesting investors renewed interest.
Per Ethereum, it has continued to decline sharply since investors began trading its ETF in July at a price of $3,440. Ethereum has lost its support zone around the $2,400 level, a crucial level supporting the upward momentum. As of this writing, ETH is trading at $2,297, down by 2.8% in the past day. Like Bitcoin, ETH’s trading volume increased by 31.7% to $17.7 billion in the same timeframe.
The State of the BTC and ETH Market
The latest data from Farside Investors shows consistent outflows in the spot Bitcoin ETF market within the last seven days.
On Thursday, September 5, Bitcoin ETFs recorded outflows totaling $211.1 million. Fidelity’s Bitcoin ETF (FBTC) recorded the highest net outflows at $149.5 million, outpacing GBTC’s $23.2 million outflows. Bitwise’s BITB saw an outflow of $30 million, and BlackRock’s IBIT recorded a net zero daily inflow.
Ethereum spot ETFs have also recorded consistent outflows, similar to what is observed in the Bitcoin market. According to Farside, these ETFs, excluding Grayscale’s ETHE, all recorded net zero daily inflow on Thursday. ETHE saw outflows of $7.4 million, a three-day streak of net outflows.
What to Expect for Future Price Movements: Will ETFs Trigger a Change?
The major outflows from these ETFs add to the market’s continued volatility. Moreover, the current figures highlight the ongoing negative sentiment among institutional investors. Thus, Bitcoin and Ethereum will likely surge higher with increasing momentum in the ETF market.
For Bitcoin, a key support level has formed at $51,000. Analyst are cautious, noting that Bitcoin price could plunge to a low of $40,600 if it loses this key support level.
Meanwhile, Ethereum’s midterm perspective shows no reversal signals at the moment. However, if the candle closes far from its low, traders may witness a bounce back to the $2,500 range soon.
