Bitcoin and Ethereum Prices Plunge Amid Major ETF Outflows, Sparking Bearish Sentiment
The cryptocurrency market is witnessing a significant downturn as both Bitcoin and Ethereum face substantial price drops due to large outflows from their respective spot ETFs.
Over the past 24 hours, Bitcoin’s price has fallen by 5.8% to $56,573, while Ethereum has seen a 5% decrease, now trading at $2,400. This decline is driven by the ongoing bearish sentiment and heavy selling pressure in the market.
Bitcoin ETF Outflows and Price Impact
On September 3, Bitcoin spot ETFs experienced a total net outflow of $288 million, marking the fifth consecutive day of net outflows. This sustained withdrawal of funds reflects a growing bearish sentiment among investors. The Grayscale Bitcoin Trust (GBTC) saw a single-day outflow of $50.395 million, while Fidelity’s Bitcoin ETF (FBTC) recorded an even larger outflow of $162 million.
These significant outflows have had a direct impact on Bitcoin’s market price, which has crashed to $56,573, down 5.8% in the last 24 hours. The total net asset value of Bitcoin spot ETFs now stands at $52.689 billion, underscoring the scale of the capital flight from Bitcoin investments.
Ethereum ETF Outflows and Price Decline
Ethereum has not been spared from the bearish trend. On September 3, the total net outflow of Ethereum spot ETFs amounted to $47.3994 million. Grayscale’s Ethereum ETF (ETHE) led the outflows with $52.3103 million leaving the fund. In contrast, Fidelity’s Ethereum ETF (FETH) managed to attract a modest inflow of $4.9109 million, but this was not enough to counteract the overall negative sentiment.
As a result, Ethereum’s price has dropped to $2,400, a 5% decline over the last 24 hours. The current total net asset value of Ethereum spot ETFs is $6.758 billion, indicating a challenging environment for Ethereum investors as well.
Market Sentiment and Outlook
The recent outflows from both Bitcoin and Ethereum ETFs signal a broader market concern about the short-term prospects of these leading cryptocurrencies. The significant sell-off, particularly in Bitcoin, suggests that investors are cautious, potentially due to broader economic uncertainties or a shift in risk appetite.
The continuous decline in prices over the last 24 hours reflects the bearish sentiment that has gripped the market. Both Bitcoin and Ethereum are now trading at levels that have alarmed investors, prompting concerns about further declines if the outflows continue.
The current Fear & Greed Index is 27, which means fear is at peak and this low index is a great indication for people to invest some money in top flagship cryptocurrencies.
