Story Highlights
Institutional investors are increasingly interested in Bitcoin and altcoins following the Fed rate cut.
Historical data suggests a bullish trend for crypto in the fourth quarter.
Bitcoin has seen net cash inflows while Ethereum has experienced net cash outflows.
Institutional investors are increasingly turning their attention to Bitcoin (BTC) and altcoins, spurred by last week’s Federal Reserve
rate cut
. As the global economic landscape shifts, the stellar performance of Gold (XAU) is also expected to drive a bullish crypto outlook for the
fourth quarter
.
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Historically, the crypto market has seen bullish momentum in October, reaching its peak in December, followed by consolidation in January. Investors are keeping a close watch to see if this trend will repeat.
Bitcoin Dominates, Ethereum Struggles
According to
CoinShares’
latest weekly report, digital asset investment products saw cash inflows for the second consecutive week, totaling $321 million. This surge in demand is largely attributed to the Federal Reserve’s 50 bps rate cut.
Bitcoin attracted the lion’s share of institutional investments last week, pulling in $284 million in net inflows. In contrast, Ethereum (ETH) experienced net outflows of $29 million, a trend attributed to declining interest in Grayscale Trust’s Ether products and minimal demand for other spot Ether ETFs.
Solana’s digital asset products managed to buck the broader trend, with modest inflows of around $3.2 million last week, signaling cautious optimism among investors.
Also Read :
What Happened to Bitcoin Today? Update 23 September 2024
,
Market Impact
As
Coinpedia has reported
in the past, the approval of the US spot Ether ETFs did not gain traction like that of Bitcoins. The latest market data shows that the US spot Ether ETFs have registered a net cash outflow of over $607 million since approval. On the other hand, the US spot Bitcoin ETFs have registered a net cash inflow of over $17 billion to date.
As a result,
ETH price
has dropped over 25 percent in the past two months, while
Bitcoin price
has only retraced less than 10 percent.
Despite this, Bitcoin’s market dominance suggests a potential shift toward altcoins, which could eventually favor Ethereum.
Do you believe Ethereum will recover its position, or will Bitcoin’s dominance continue to grow?
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