Bitcoin on a Reversal as Ether ETF Investors Buy Dip
Ether ETFs in the US drew a net inflow of $49 million on Monday.
The token had lost a fifth of its value amid a wider selloff
Tweet on BTC & Ether reversal on Tuesday
Bitcoin and Ether clawed back from steep losses on Tuesday after a bout of risk aversion in global markets spilled over into crypto.#Bitcoin #ETH #Crypto pic.twitter.com/aoZNVX71EP
— The_Journalbiz (@the_journalbiz) August 6, 2024
Bloomberg chart, BTC
Bitcoin and Ether clawed back from steep losses on Tuesday after a bout of risk aversion in global markets spilled over into crypto.
Bitcoin inched back to briefly top $56,000 while second-ranked token Ether rose as much as 4.6% to more than $2,500.
The moves represent a partial recovery from a frantic selloff on Monday that saw Bitcoin sink below $50,000 for the first time since February. Ether suffered at one point its steepest fall since 2021.
The rout marks the first major stress test for digital assets since a group of spot-Bitcoin and Ether exchange-traded funds debuted in the US in January and July, respectively.
Ether ETF investors bought the dip to the tune of a $49 million net inflow for the crop of nine products, according to data collected by Bloomberg, more than offsetting outflows from the Grayscale Ethereum Trust.
The Bitcoin ETFs suffered a $168 million net outflow on Monday, following heavy outflows last week. Bitcoin was trading up about 1.5% at $55,200 and Ether was around 1% higher at $2,460 at 9:31 a.m. Tuesday in New York.
Still, some traders believe a quick turnaround is possible. “It was only nine days ago that the BTC community was arguably the most bullish it’s ever been,” said Rich Rosenblum, co-chief executive officer and co-founder of GSR Markets. “BTC could rally back to $70,000 plus, just as quick as it sold off.”
