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Ethereum's price has dipped below $3,400 amid a broader market downturn, with Bitcoin falling under $96,000. The cryptocurrency has seen a 12.44% decline over the past week, facing increased selling pressure and significant outflows from Ethereum ETFs, including a $58.13 million sell-off by Grayscale. As whales offload tokens to repay debts, the critical support level at $3,035 is under scrutiny, with potential further declines towards $2,942 if the bearish trend continues.
The US SEC has approved the first combined Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton, featuring an 80/20 split. This milestone comes amid significant outflows from existing Bitcoin and Ethereum ETFs, totaling $671 million and $60 million, respectively, as the market faces a downturn. The new ETFs are set to launch in January 2024, with expectations of strong demand for diversified crypto investment products.
Bitcoin ETFs experienced a record outflow of $671.9 million on December 19, coinciding with a drop in Bitcoin's price to around $96,409. Grayscale's GBTC and ARK Invest's ARKB were the largest contributors to the outflows, reflecting a broader market decline that saw over $1 billion liquidated in 24 hours. Despite this, Bitcoin maintains a 57.4% dominance in the crypto market, with analysts suggesting the downturn may be temporary as discussions around "buying the dip" surge to an eight-month high.
Bitcoin ETFs experienced a record single-day outflow of $680 million on December 19, ending a 15-day inflow streak. Ethereum ETFs also faced $60 million in outflows, breaking an 18-day positive trend. Fidelity and Grayscale funds led the outflows, while BlackRock's ETFs remained stable.
Bitcoin experienced a significant price drop, falling from over $105,000 to below $96,000, following a record $671.9 million net outflow from Bitcoin ETFs on December 19. This reaction was triggered by Fed Chair Powell's comments on interest rates and inflation, leading to heightened investor fear. Ethereum ETFs also faced outflows, with $60.5 million withdrawn, contributing to a 9% decline in ETH's price.
The SEC has approved Hashdex and Franklin Templeton's Bitcoin and Ether index ETFs, allowing them to trade on Nasdaq and Cboe BZX Exchange, respectively. Both ETFs will hold spot Bitcoin and Ether, meeting regulatory criteria to protect investors. This approval may encourage other firms, like BlackRock, to launch similar products in the growing crypto market.
A recent crypto market sell-off triggered $1 billion in leveraged liquidations, primarily affecting long positions. Bitcoin, despite dropping below $96,000, has gained 130% this year, while the total crypto market cap fell 9.5% to $3.4 trillion. The Fed's hawkish stance following a rate cut decision has contributed to market volatility, with many traders viewing the pullback as a healthy correction.
Ethereum's price fell to $3,540, a 10% drop, following a hawkish Federal Reserve announcement, while Ethereum ETFs saw inflows surpassing $2.46 billion over 18 days. Despite the decline, over 54.7 million ETH are staked, indicating strong long-term investor sentiment. The total value locked in Ethereum's DeFi ecosystem exceeds $73.7 billion, significantly outpacing competitors.
1FUEL is emerging as a leading cryptocurrency wallet, offering seamless cross-chain transactions, robust privacy features, and attractive staking rewards of up to 30% APR. With a successful presale raising over $600k and predictions of 100x growth, it aims to surpass established tokens like Chainlink and Binance Coin by addressing modern investors' needs for security and utility.
BlackRock's iShares Ethereum Trust ETF (ETHA) has surpassed 1 million ETH in holdings, reaching 1,025,378 ETH valued at over $4 billion, just six months after its July 2024 launch. This milestone highlights a significant rise in institutional interest in Ethereum ETFs, which have collectively attracted over $850 million in inflows recently, bringing total assets to over $14 billion. Despite this growth, BlackRock's Head of Digital Assets Research noted that Ethereum products may take longer to catch up to Bitcoin ETFs.
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