Dex-Trade News Digest: Ethereum ETFs See Major Outflows While Bitcoin Prepares for Q4 Rally
Large moves are being witnessed in the market, with Ethereum ETFs recording one of their biggest one-day outflows, while Bitcoin readies for a possible breakout in the last quarter of this year. That but shows the difference in dynamics in the crypto world, led by sentiment at the marketplace and changing regulatory regimes.
Ethereum ETFs Experience Largest Daily Outflows Since July
U.S. spot Ethereum exchange-traded funds saw extremely sharp net outflows on Monday, with as much as $79.21 million pulled out on the day-the largest since late July. Much of this decline came from the Grayscale Ethereum Trust, ETHE, alone, which reported $80.55 million in withdrawals. But despite this heavy drop, other Ethereum ETFs did not report any outflows. Bitwise's ETHW ETF actually posted a small inflow of $1.34 million.
In all, the total trading volume for all nine Ethereum ETFs stood at $167.35 million, up from $139.47 million last Friday. Meanwhile, spot Bitcoin ETFs continued to attract modest inflows, recording $4.56 million in net inflows, led by Fidelity's FBTC with $24.93 million.
The future of the Ethereum market seems highly uncertain with some analysts already hinting at prospective liquidity problems and unpredictability of this market. However, projects believed to be arriving soon, such as Eigenlayer, and emerging interest in Ethereum-based assets may bring Ethereum a much-needed boost in upcoming months.
Bitcoin Set for a Q4 Rally, Says 10x Research
While Ethereum struggles, Bitcoin prepares for a possible rally. Markus Thielen, of 10x Research, Head of Research, thinks that Bitcoin is "set to smash new all-time highs in Q4 2024." The market structure is healthy, liquidity has improved, and speculative trading drives the forces, according to a report compiled by 10x Research.
Among factors that have driven the price action of Bitcoin include the recent rate cut by the Federal Reserve by 50 basis points, a factor that has cemented a risk-on environment for assets such as Bitcoin. On top of this, the expected release of $16 billion from the creditors of FTX between December 2024 and March 2025 will provide much-needed liquidity in the market and can therefore drive an upward price action.
The looming U.S. election is also seen as a strong driving force, especially since both Vice President Kamala Harris and former President Donald Trump seem supportive of the asset class. A recent endorsement by Harris of cryptocurrency and AI during a fundraiser has fanned optimism in the market that it will be pro-innovation, bipartisan, and focused on much-needed regulation.
What’s Next for the Crypto Market?
The trends of Ethereum and Bitcoin are a relative testament to the ups and downs within the cryptocurrency landscape. Whereas Ethereum ETFs struggled with outflows, Bitcoin's potential for a Q4 rally underlined resiliency and growing acceptance of digital assets. As the year wears on, investors should closely watch market indicators, regulatory development, and institutional movements.
Stay associated with Dex-Trade for the latest updates on these dynamic market fluctuations and how they may influence your investment plans accordingly.
