Bitcoin ETFs see massive $1.2B outflow over 8 days amid market volatility
Between August 30 and September 6, 2024, U.S.-based Bitcoin exchange-traded funds (ETFs) experienced a combined outflow of $1.2 billion, marking their largest withdrawal since the ETFs launched in January. This withdrawal coincided with a sharp drop in Bitcoin prices, which fell by 17.28%, from $64,668 on August 26 to $53,491 on September 7. Analysts attribute this drop to Bitcoin’s historically weak performance in September, often referred to as “Rektember,” though they anticipate a recovery in October, or “Uptober.”
Despite the outflows, Bitcoin ETFs continued to dominate the exchange-traded fund space in 2024. Data shows that four of the largest ETF launches this year were spot Bitcoin ETFs, including funds from BlackRock, Fidelity, ARK 21Shares, and Bitwise. Of the 400 new ETFs launched, 13 were crypto-related, with 10 Bitcoin-based ETFs and three focusing on Ethereum. Notably, the iShares Ethereum Trust ETF crossed the $1 billion mark in August, making it one of the top ETF launches of 2024.
Although Bitcoin’s price decline in September aligns with historical trends, some analysts remain optimistic about its future performance, citing a potential rebound in the following months. Financial adviser Suze Orman even suggests that Bitcoin is a valuable long-term asset, particularly as younger investors increase their involvement in the market, potentially driving its value up over time.
Tether’s agricultural investment and expanding ventures into Bitcoin mining and education also highlight the broader growth and diversification within the crypto sector. Crypto ETFs have consistently outperformed other types of funds launched in 2024, further cementing their place in the financial markets despite short-term volatility.
Source: Cointelegraph
Bitcoin analyst predicts major bull run with $45K as price floor
According to crypto analyst Michaël van de Poppe, Bitcoin is on the cusp of a major bull cycle that could last for two years. Van de Poppe predicts that Bitcoin may experience some “final corrections,” with a potential dip to $53,000 before rebounding strongly. He sets $45,000 as the price floor for Bitcoin during this cycle.
Despite the recent price consolidation and a six-month low below $50,000, Van de Poppe believes that favorable macroeconomic conditions, such as expected U.S. Federal Reserve rate cuts and increased global liquidity, particularly from China, will fuel a significant rally. He draws parallels to Bitcoin’s 2019 market behavior, noting that after a similar correction in 2019, Bitcoin landed at $6,000 before embarking on a long-term bullish trend. This pattern is likely to repeat, with Bitcoin expected to land between $45,000 and $50,000 before the next upward move.
In his analysis, Van de Poppe acknowledges the fragility of equity markets, driven by investor fear of inflation, and sees Bitcoin as a potential beneficiary of this instability. He predicts that as the equity markets weaken, more liquidity will flow into alternative assets like Bitcoin, boosting its value.
Furthermore, Van de Poppe remains optimistic about Bitcoin’s resilience despite recent challenges. He dismisses fears of a major crash, arguing that the current market conditions are setting the stage for what could be the “biggest bull cycle ever.” He emphasizes that geopolitical instability, a weakening U.S. economy, and a dovish Federal Reserve are all factors that point to Bitcoin’s long-term potential for growth.
The upcoming U.S. Federal Reserve meeting on September 18, where interest rate decisions will be made, could play a pivotal role in Bitcoin’s future trajectory. Lower rates typically encourage liquidity to enter the markets, benefiting risk assets like Bitcoin.
As of September 8, Bitcoin was trading around $54,000, and while short-term corrections may occur, the outlook remains largely bullish according to Van de Poppe’s analysis.
Source: Cointelegraph
Fractal bitcoin scaling solution goes live, leveraging bitcoin core technology
Fractal Bitcoin, a new Bitcoin scaling solution backed by Unisat, has officially launched its mainnet after a successful test phase that began in July 2024. Unlike other scaling solutions that use Ethereum Virtual Machine (EVM) compatibility, Fractal Bitcoin operates directly on the Bitcoin Core codebase, integrating native Bitcoin features and the OP_CAT opcode to enhance functionality. The network promises fast block confirmations (under 30 seconds) and significantly increases capacity using recursive layering. It also introduces “Cadence Mining,” merging Bitcoin mining for improved security. Fractal’s mainnet includes a decentralized exchange, PizzaSwap, and its native token, FB, with a total supply of 210 million. Half of the tokens are allocated for proof-of-work mining, while the other half is pre-mined for investors, contributors, and ecosystem development.
Source: The Block