- Bitcoin surpassed $100,000 but faced four straight days of ETF outflows.
- Ethereum is gaining traction with investors with stable prices and ETF inflows of $53.6 million.
Following Donald Trump’s victory as the 47th President of the United States, Bitcoin (BTC) saw an unprecedented rise. The royal coin surpassed 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), signaling strong investor enthusiasm.
Bitcoin ETFs face capital outflows
However, the dynamic took a sudden turn. Bitcoin ETFs have now recorded four consecutive days of outflows, starting December 19, with a staggering $671.9 million in withdrawals.
According to the latest investor data from Farside, on December 24, BTC ETFs saw significant outflows totaling $338.4 million, 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 emerged as an exception. It saw inflows worth $8.5 million, standing out amid a broader trend of withdrawals.
The transition from inflows to outflows in Bitcoin ETFs aligned with a significant price decline, with Bitcoin falling to $94,000 on December 24, reflecting waning institutional interest.
What could be the possible reason behind this?
Here, it is worth noting that this decline comes amid growing expectations of a potential market slowdown.
Historical data on trends from US election years suggests that the current recovery may lose momentum after Trump’s inauguration on January 20, 2025.
For context, historical analysis from Bloomberg and Macrobond Financial indicates a recurring trend in US markets, where assets such as stocks and cryptocurrencies, including Bitcoin, typically experience a post-election rally.
However, this momentum often fades once the president-elect takes office. This has further fueled concerns about the current market’s ability to maintain its upward trajectory, raising questions about how Bitcoin will perform 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% rise over the past 24 hours.
This slight rise could portend a reversal of fortune for Bitcoin ETFs, which have faced a difficult time in recent days.
Ethereum in the spotlight
Meanwhile, the spotlight has turned to Ethereum (ETH). Spot Ethereum ETFs saw inflows of $53.6 million, highlighting a growing investor preference for Ethereum over Bitcoin in the current market climate.
On the price front, Ethereum maintains stability around $3,400, while Bitcoin approaches the critical $100,000 threshold, rallying to its resistance level of $99,000.
So, even if the market remains uncertain, signs of recovery point to a strong end to the year.
