Ethereum
Bitcoin and Ethereum Regain Footing Despite Drop in Demand for ETFs
The cryptocurrency market resisted further losses on Thursday, with large-cap cryptocurrencies Bitcoin and Ethereum regaining price levels seen earlier in the week.
For more than 24 hours, Bitcoin rose 4.5% to just under $67,000, while Ethereum posted a 2.1% gain to $3,250, data from CoinGecko shows.
Cryptocurrencies plunged late Wednesday night amid a wave of liquidations following significant losses felt across the market, with technology stocks dragging major indices lower.
Although the market has shown signs of resilience, the swing between risk and risk aversion sentiment among investors is weighing heavily.
Despite this, several factors favorable to the cryptocurrency market persist, including: changing political winds in Washington, DC, and investor interest in new listed stocks Ethereum exchange traded funds.
Commenting on Bitcoin’s drop to $53,000 on July 5, on-chain analytics platform Glassnode called the asset’s revival “very strong,” which has led short-term holders back into unrealized profits.
“This has provided much-needed financial relief and is supported by a period of positive net capital inflows over the past few weeks,” Glassnode said in a statement. note Wednesday.
Glassnode defines short-term holders as anyone who has obtained and held cryptocurrency for less than six months.
Thursday’s market rally comes as inflows into U.S. spot Ethereum ETFs have seen daily outflows totaling $285 million over the past two days, data SoSo Value broadcasts.
Ethereum ETFs went live for trading in the US on Monday, with initial interest pushing inflows to just under $107 million, Decrypt Previously reported.
Bitcoin inflows fared a little better, up about $76 million over the same two-day period.
On Tuesday, investment management firm VanEck provided projections for Bitcoinclaiming that the asset could reach a value of $2.9 trillion by 2050, largely due to its “adoption as a global medium of exchange and reserve asset.”
“This projection is rooted in the anticipated erosion of confidence in current reserve assets,” VanEck’s digital asset research team said in a statement. note to investors. “It is conceivable that by 2050, Bitcoin could be used to settle 10% of global international trade and 5% of global domestic trade.”
This would result in central banks holding 2.5% of their assets in Bitcoin, bringing its total market capitalization to a whopping $61 trillion, VanEck said.