According to the Financial Associated Press on December 25 (Editor: Ma Lan), the crypto market is highly volatile; after Bitcoin plunged to $92,000 on Christmas Eve, it surged back to $98,000 on Wednesday, reflecting the intense market speculation.
On Tuesday, the most popular Bitcoin ETF, BlackRock's IBIT, recorded the largest single-day outflow in history, reaching $188.7 million, surpassing its previous record high of $72.2 million set on December 20.
Meanwhile, Bitcoin ETFs have recorded net outflows for the fourth consecutive trading day. Since December 19, the total net outflow from 12 U.S.-listed Bitcoin ETFs has reached $1.52 billion.
This decline is not unrelated to the Fed's comments on rate cuts last week. Due to the unstable inflation situation, the Fed hinted that the path for rate cuts next year will become slower, directly causing a drop in prices across various assets including U.S. stocks, gold, and Bitcoin on the day.
In addition, analysts warn that the dollar money supply fell by $4.1 trillion after peaking in October, and given that the price of Bitcoin has a lagged correlation of about ten weeks with changes in global money supply, this could lead to a price drop of $20,000 for Bitcoin.
The latecomer surpasses the predecessor.
Since the launch of Bitcoin ETFs on January 11 this year, they have been enthusiastically sought after by investors, with net inflows exceeding $35 billion so far, and the value of the Bitcoin they hold exceeding $110 billion, accounting for 5.71% of the total Bitcoin circulating supply.
This has made Bitcoin ETFs one of the best-performing ETF categories of the year, also helping to drive the epic rise in Bitcoin prices. However, after Bitcoin broke the $100,000 price today, the market's profit-taking sentiment has increased, combined with adverse macro factors, contributing to the recent price correction of Bitcoin.
Meanwhile, another cryptocurrency, Ethereum, began to gain momentum during this phase. On Tuesday, the Ethereum ETF saw inflows for the second consecutive day, adding another $53.6 million after a $130.8 million inflow on Monday.
This category of ETFs was only approved for listing by the U.S. Securities and Exchange Commission in July this year, and compared to Bitcoin ETFs, the Ethereum ETF's rise has been relatively smooth and slow. However, starting in late November, the Ethereum ETF suddenly received significant attention, setting a record for 18 consecutive days of net inflows.
The divergent performances of Bitcoin and Ethereum in ETFs have led some analysts to believe that Ethereum may lead Bitcoin in January of next year.
Michael van de Poppe, founder of MN Capital, pointed out that there may be more funds flowing into Ethereum early next year, while the Bitcoin market continues to experience outflows, leading to price consolidation. He anticipates this will trigger a boom in altcoins within the Ethereum ecosystem.
