U.S. stocks rose, with the Dow Jones Industrial Average hitting another record high, capping a tumultuous August on a positive note. But cryptocurrency ETFs are experiencing a cooling phase, with Bitcoin and Ethereum still down more than 10% and 22% this month.
PCE in line with expectations, U.S. ends August higher
The personal consumption expenditures (PCE) price index released yesterday (8/30) increased by 0.2% monthly and 2.5% annually. In line with market expectations. Core PCE, excluding food and energy, was 2.6%, up 0.2% month over month.
After a panic sell-off in early August, the market seems to have gradually calmed down and has recovered from the losses at the beginning of the month. The major U.S. indexes closed up in August, and the Dow Jones Industrial Average hit record highs many times, which also showed the rotation of funds and stocks. move.
The market will be closed next Monday (9/2), which falls on Labor Day in the United States.
Cryptocurrency ETFs are experiencing a cooling phase
The U.S. Bitcoin spot ETF market experienced a major decline on Thursday (8/29), with net outflows totaling $71.73 million, while leading BlackRock IBIT also experienced daily net outflows for the first time since 5/1. Reflecting growing investor caution in the cryptocurrency space.
(The Ryder Bitcoin ETF saw net outflows for the first time since May, reflecting a broad market decline)
The Ethereum spot ETF is even more sluggish, because the net outflow of Grayscale ETHE has never stopped. Since its issuance and listing, only a few 9-day overall funds have shown net inflows. The Ethereum Spot ETF currently has a total asset value of $6.98 billion, which is 12% of the Bitcoin Spot ETF’s $54.03 billion.
ETH was affected by the liquidation of Ethereum by Jump Trading, a well-known crypto market maker, at the beginning of the month. It once plummeted to around $2,100. Although it gradually recovered, the cumulative decline in August was still as high as 22%.
Many analysts previously believed that this round of crypto bull market is different from the past. It is mainly driven by crypto ETFs and is greatly affected by traditional financial funds. Even if funds have withdrawn from AI stocks recently, they have flowed to more stable stocks. Large-cap stocks (the Dow Jones Industrial Index frequently hits new highs) or small-cap stocks that are highly affected by interest rates make the 2024 crypto market cycle full of variables.
This article Turbulent August is coming to an end, the Dow hits new highs, crypto funds are drying up, is it cooling off? First appeared in Chain News ABMedia.
