Significant Inflows Mark End of Record Outflow Streak
On Monday, U.S.-listed Bitcoin exchange-traded funds (ETFs) saw a significant turnaround with $28.7 million in net inflows, ending a prolonged period of record outflows.
Market Update: BTC and CD20 Performance
Bitcoin (BTC) is currently trading below $56,500, while the CoinDesk 20 (CD20) index has risen by 2.3%.
The recent inflow of $28.7 million into Bitcoin ETFs marks a noteworthy shift, halting a record-breaking streak of outflows that totaled $1.2 billion. This outflow period had persisted since August 27, making Monday the first day of net inflows for September. Historically, September has been a challenging month for Bitcoin, with traders often predicting bearish trends.
Impact of Recent Outflows
The recent outflows have pushed total net inflows for Bitcoin ETFs since their inception below the $17 billion mark, reverting to levels last observed in July. Over the past two weeks, Bitcoin prices have dropped nearly 15%, now standing approximately 25% below their peak of $73,300 reached in March.
Traders’ Perspectives Amidst Volatility
Despite the recent downturn in Bitcoin’s price, some traders maintain a positive outlook. QCP Capital traders, in a Telegram broadcast on Tuesday, expressed their optimism:
“Despite the near-term volatility and price fluctuations, we remain structurally bullish,” they noted. “The market seems to be capitalizing on this dip to bolster long-term bullish positions.”
They also remarked on the encouraging bounce from the $52,500 mark, suggesting that while the bottom may not be fully confirmed, institutional investors are seizing the opportunity to increase their bullish bets for December and March.
Current Market Conditions
The CoinDesk 20 index, which tracks major digital assets, is trading at 1,800 after a 2.3% increase. Bitcoin is trading slightly above $56,500, having fallen from $57,000. This movement comes ahead of the upcoming release of the Consumer Price Index (CPI) and Producer Price Index (PPI), as well as the first debate between Donald Trump and Kamala Harris.
Political Debate and Market Sentiment
Traders are not expecting cryptocurrency to feature prominently in the debate. Polymarket data suggests only an 11% chance that Kamala Harris will mention cryptocurrencies, including Bitcoin, and a 13% chance for Donald Trump. Additionally, there is a 30% chance that the debate will exceed its scheduled end time of 10:30 pm.
Performance of AI and Staking Tokens
In other market news, several prominent AI tokens saw significant gains during the first half of Asia’s business day, with the CoinGecko AI category rising by 10%. Liquid staking tokens are also performing well, with Lido DAO’s LDO token up 6.3%. Meanwhile, Rocket Pool’s RPL token has surged over 20%, following Binance Futures’ announcement of leveraged perpetual contracts. Despite this, RPL’s total value locked remains stable at just above $2.9 billion, according to DeFi Llama data.
