Cryptos Weaken Amidst Outflows From Bitcoin ETFs

Crypto market capitalization declined overnight, and outflows were recorded from U.S.-listed Bitcoin ETFs on Tuesday, portending a negative shift in investor sentiment. The reversal of sentiment comes amidst a resurgence in the U.S. Dollar and a hardening in bond yields. Diminished rate cut expectations and the uncertainty in the run up to the presidential elections in the U.S. dampened sentiment for digital assets and digital asset-based investment products.

Overall crypto market capitalization has fallen to $2.29 trillion from $2.32 trillion a day earlier. Sentiment remains weak with only 4 of the top 100 cryptocurrencies trading with overnight gains in excess of 1 percent. In contrast, more than 70 percent of the same league is trading with overnight losses of more than a percent.

U.S.-listed Bitcoin ETFs recorded an outflow of $79.1 million on Tuesday versus net inflows of $294.3 million a day earlier. Net outflows were last reported on October 10. Data from Farside Investors showed net outflows of $134.7 million from Ark 21Shares Bitcoin ETF (ARKB). Net inflows of $43 million received by iShares Bitcoin Trust (IBIT), $8.8 million received by Fidelity Wise Origin Bitcoin Fund (FBTC) and $3.8 million received by VanEck Bitcoin ETF (HODL) helped offset the massive outflows from ARKB.

The U.S. Dollar’s climb vis-à-vis the basket of currencies comprising the euro, the British pound, the Japanese yen, the Canadian dollar, the Swiss franc and the Swedish krona lifted the Dollar Index to a high of 104.37 in the day’s trading. It is currently at 104.35, rising 0.27 percent from 104.07 day earlier.

Bond yields in the U.S. hardened across tenors as investors increased their bets on a Trump Presidency. 30-year yields increased 0.32 percent whereas the ten-year tenor witnessed a spike of 0.38 percent. An increase of 0.44 percent was recorded in the 5-year tenor. The short-term tenor of 2 years also saw yields hardening by 0.22 percent.
The yield spike came in the backdrop of expectations of a quarter-point rate cut by the Federal Reserve on November 7 falling to 87.6 percent from 92.5 percent a day earlier.

Bitcoin slipped 0.97 percent overnight to trade at $66,462.24, around 10 percent below the all-time high. Weekly losses have increased to 1.6 percent whereas addition over the 30-day horizon has fallen to 4.6 percent. Gains in 2024 are at 57.2 percent. The original cryptocurrency traded between $67,801 and $66,181 in the past 24 hours.

Ethereum too lost 1.9 percent in the past 24 hours to trade at $2,580.35, around 47 percent below the previous peak. Weekly losses are at 1.3 percent. Losses over the 30-day horizon exceed 2.6 percent. Gains in 2024 are a little more than 13 percent. The leading alternate coin traded between $2,642.6 and $2,563.17 in the past 24 hours.
Surprisingly, U.S.-listed Ether ETFs recorded inflows of $11.9 million on Tuesday versus outflows of $20.8 million a day earlier.

Despite the decline in prices, Bitcoin’s crypto market dominance has increased to 57.30 percent from 57.07 percent a day earlier. Ethereum’s share of the overall crypto market has decreased to 13.54 percent from 13.62 percent a day earlier.

4th ranked BNB (BNB) slipped more than 1.4 percent overnight, clocking weekly losses of 2.1 percent at its current trading price of $582.69.

5th ranked Solana (SOL) edged up 0.12 percent overnight, increasing weekly gains to 6.8 percent. SOL is currently trading at $166.20.

7th ranked XRP (XRP) has lost 1.6 percent overnight and 3.1 percent in the past week to trade at $0.5262. The cryptocurrency issued by Ripple Labs is saddled with losses of more than 14.4 percent on a year-to-date basis.

8th ranked Dogecoin (DOGE) slipped 3.94 percent overnight to trade at $0.1372.

9th ranked TRON (TRX) gained 0.35 percent overnight to trade at $ 0.1599.

10th ranked Toncoin (TON) shed 1.2 percent overnight. TON is currently trading at $5.15.

80th ranked cat in a dogs world (MEW), a Solana-based meme coin topped overnight gains with a surge of 5.8 percent. 74th ranked Beam (BEAM) followed with an addition of 4.9 percent.

73rd ranked ApeCoin (APE) is the greatest laggard with an overnight plunge of close to 16.5 percent. 20th ranked Aptos (APT) also lost in excess of 8 percent. 98th ranked First Neiro on Ethereum (NEIRO) and 91st ranked Mog Coin (MOG) also shed more than 6 percent overnight.

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