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Ethereum becomes the worst-performing crypto product this year

In this post:

  • Ethereum experienced its largest outflow since August 2022, totaling $61 million, making it the worst-performing crypto asset this year.
  • The digital asset market saw $30 million in outflows last week, marking the third consecutive week of outflows, with Grayscale experiencing $153 million in outflows.
  • Bitcoin and some altcoins like Solana and Litecoin saw positive inflows, while Ethereum continues to struggle with investor confidence.

Ethereum has hit a new low, becoming the worst-performing digital asset investment product of the year. According to CoinShares, Ethereum experienced its largest outflow since August 2022, with $61 million exiting last week.

Digital asset investment products have faced a rough patch, with last week marking the third consecutive week of outflows. A total of $30 million left the market, reflecting a persistent negative trend.

Ethereum becomes the worst-performing crypto product this year
Source: CoinShares

Despite some providers experiencing minor inflows, the market was heavily impacted by Grayscale, which saw outflows of $153 million.

Trading volumes did rise by 43% week-on-week to $6.2 billion, but this figure is still below the $14.2 billion weekly average for the year.

Regional breakdown of inflows and outflows

The regional analysis shows a mixed picture. The US led with $43 million in inflows, followed by Brazil and Australia with $7.6 million and $3 million respectively.

However, several regions saw massive outflows. Germany faced $29 million in outflows, Hong Kong $23 million, Canada $14 million, and Switzerland $13 million.

Source: CoinShares

On the flip side, some digital assets saw positive movements. Multi-asset and Bitcoin ETPs led the inflows with $18 million and $10 million, respectively.

Interestingly, short-bitcoin products saw outflows totaling $4.2 million last week, indicating a possible shift in sentiment. Altcoins like Solana and Litecoin also witnessed inflows, with Solana receiving $1.6 million and Litecoin $1.4 million.

QCP Capital shared some interesting insights on the current market dynamics. They noted that Bitcoin started the second half of the year with a strong surge from the $60k region to $63.7k, following a false break below the $60k support level.

This movement was supported by recovering BTC spot ETF inflows, which saw $73 million of net inflows last Friday, the highest daily inflow in two weeks.

Ethereum becomes the worst-performing crypto product this year
Source: TradingView

According to QCP, looking at seasonality, Bitcoin has a median return of 9.6% in July and tends to rebound strongly, especially after a negative June. Last month, Bitcoin experienced a negative return of -9.85%, so signs are pointing towards a bullish July.

Their options desk also noted flows positioning for an upside move last Friday into the month-end, potentially in anticipation of the Ethereum spot ETF launch. This optimism suggests that investors are getting ready for a potentially profitable month.

For traders looking to capitalize on these trends, QCP Capital suggested a BTC accumulator with an expiry of 20 September 2024. The trade has a strike price of $59,000 and a barrier of $71,000, with weekly observation frequency.

The spot reference for BTC/USD is $63,000. This trade idea banks on the bullish momentum and seasonality patterns that Bitcoin often sees in July.


Jai Hamid

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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