he past few weeks have recorded large numbers of outflows from Bitcoin and ethereuem ETFs in the USA. With approximately $980 million dollars of outflow in Bitcoin ETF and $100 million dollars in ETH ETFs.
Institutional Interest Wanes
Furthermore, VanEck withdrew its Ethereum Futures ETF and at the same time WisdomTree withdrew the spot ETH ETF application. It is important to take into consideration these moves which clearly highlight challenges the crypto market is facing recently.
Market Indicators Show Caution
Multiple indicators such as the Nansen risk management indicators are showing clear signs that the sentiment in Bitcoin is currently negative. However the call-put spread is showing a neural market. This is highlighted by Bitcoin and ethereum being at critical support levels and consolidating for multiple months.
Election Uncertainty and Economic Factors
Moreover, uncertainty regarding the upcoming US elections and policies that will be implemented regarding the crypto sector as well as the state of the global economy is having negative effect on the market as investors are sidelined waiting for more clarity in order to allocate into risky assets.
A cocktail of challenges
The crypto market has been subjected to a myriad of tests ranging from the ETFs and the elections to mixed signals on the economy. These factors are creating a rather conservative attitude towards investments and prolonged consolidation in the price of risky assets. It is therefore important for investors to remain cautious on these various factors as they make decisions in this uncertain market environment.
