Bitcoin and Ethereum Recovering Strongly Amid Declining Interest in ETFs

The cryptocurrency market showed resilience on Thursday, with major coins like Bitcoin and Ethereum bouncing back from recent losses.

In the past 24 hours, Bitcoin has surged by 4.5% to nearly $67,000, while Ethereum has gained 2.1% to reach $3,250, according to data from CoinGecko.

The crypto market experienced a downturn late Wednesday, marked by a wave of liquidations following broader market losses, particularly in tech stocks that dragged down major indices.

Despite this volatility, investor sentiment has been fluctuating between risk-on and risk-off, impacting market dynamics significantly.

Several positive factors continue to support the crypto market, such as shifting political landscapes in Washington, D.C., and growing investor interest in newly introduced Ethereum exchange-traded funds.

Glassnode, an on-chain analytics platform, described Bitcoin’s recovery from a drop to $53,000 on July 5 as “very strong,” attracting short-term holders back into profit territory.

The platform highlighted a period of net positive capital inflows in recent weeks, providing much-needed financial relief to investors.

Short-term holders, defined as individuals holding cryptocurrencies for less than six months, have been key players in the market’s recent movements.

Meanwhile, U.S. spot Ethereum ETFs saw daily outflows totaling $285 million over the past two days, as per data from SoSo Value.

Ethereum ETFs launched for trading in the U.S. earlier this week, with initial interest driving inflows to nearly $107 million, as reported by Decrypt.

Bitcoin’s inflows performed slightly better, increasing by about $76 million over the same two-day period.

In a notable projection, investment management firm VanEck suggested that Bitcoin could reach a price of $2.9 million by 2050. This growth is expected to be fueled by Bitcoin’s adoption as a global medium of exchange and a reserve asset.

VanEck’s digital asset research team anticipates that by 2050, Bitcoin could settle 10% of global international trade and 5% of domestic trade, leading to central banks holding 2.5% of their assets in Bitcoin and driving the cryptocurrency’s total market cap to a staggering $61 trillion.

The market’s recovery on Thursday coincided with these developments, showcasing the ongoing resilience and potential for growth within the cryptocurrency space.