- Bitcoin rose past $100,000 but suffered four straight days of ETF outflows.
- Ethereum is gaining traction among investors with stable prices and ETF inflows of $53.6 million.
After Donald Trump’s victory as 47th President of the United States, Bitcoin [BTC] experienced an unprecedented bull run. The king coin crossed the $100,000 mark for the first time, reaching an all-time high of $108,000.
This surge was accompanied by massive inflows into spot BTC Exchange-Traded Funds (ETFs), indicating great enthusiasm among investors.
Bitcoin ETFs are facing outflows
Yet the momentum has taken a sudden turn. Bitcoin ETFs have now recorded four consecutive days of outflows, starting on December 19, with a whopping $671.9 million in withdrawals.
According to the latter facts of Farside investors, BTC ETFs saw significant outflows totaling $338.4 million on December 24, mostly from major players.
BlackRock’s IBIT led the exodus with outflows of $188.7 million. It was closely followed by Fidelity’s FBTC with $83.2 million, and ARK 21Shares’ ARKB with $75 million.
Interestingly, while other ETFs reported no activity, Bitwise’s BITB was an exception. It recorded an inflow worth $8.5 million, which stood out amid the broader trend of withdrawals.
The transition from inflows to outflows in Bitcoin ETFs coincided with a significant price decline, with Bitcoin falling to a low of $94,000 on December 24, reflecting declining institutional interest.
What could be the possible reason behind this?
Here it is worth noting that this decline comes amid increasing predictions of a potential market slowdown.
Historical data on US election year trends suggest that the current rally could lose momentum after Trump’s inauguration on January 20, 2025.
For context, historical analyzes from Bloomberg and Macrobond Financial indicate a recurring trend in the US markets, where assets such as stocks and cryptocurrencies, including Bitcoin, typically experience a post-election rally.
However, this momentum often diminishes once the president-elect takes office. This has further fueled concerns about the current market’s ability to continue its upward trajectory, raising questions about Bitcoin’s performance in the months following Trump’s inauguration.
Despite these concerns, Bitcoin’s latest price movements indicate a potential shift. According to the latest data from CoinMarketCapBTC was trading at $98,052.98, reflecting a 4.18% increase in the past 24 hours.
This uptick could signal a turnaround in the fortunes of Bitcoin ETFs, which have been going through a challenging period in recent days.
Ethereum is in the spotlight
Meanwhile, the spotlight has shifted to Ethereum [ETH]. Discover Ethereum ETFs included an inflow of $53.6 million, highlighting investors’ growing preference for Ethereum over Bitcoin in the current market environment.
On the price front, Ethereum is maintaining stability around $3,400, while Bitcoin is moving closer to the critical $100,000 threshold and moving towards the $99,000 resistance level.
Although the market remains uncertain, signs of recovery point to a strong end to the year.