- Outflows from exchange-traded funds affect Bitcoin and Ethereum as risk aversion returns:


Bitcoin spot ETF funds started the week on a downward note, with nearly $263 million in outflows on Monday, breaking a nine-day winning streak.

Total inflows amounted to approximately $58 billion, while the average net assets under management were $101 billion, according to SoSoValue data. If outflows continue this week, weak sentiment could negatively impact Bitcoin and increase the likelihood of a prolonged sell-off.

Bitcoin ETF inflows | Source: SoSoValue

Ethereum spot ETF funds also experienced outflows on Monday, totaling $50 million, bringing total inflows to $12.05 billion and net assets under management to nearly $14 billion.

Ethereum ETF inflows | Source: SoSoValue

Meanwhile, U.S.-listed spot XRP ETFs remained quiet on Monday, with no inflows recorded across all five of their investment products. Total inflows currently stand at around $1.29 billion, with average net assets under management at $1.06 billion.

XRP ETF inflows | Source: SoSoValue

Overall, the trends in the cryptocurrency market seem to be influenced by developments in the US-Iran conflict. Despite a ceasefire holding, the path to a diplomatic solution remains fragile amid reports that U.S. President Donald Trump is unlikely to consider Tehran’s new proposal submitted to the White House, as it does not address Iran’s nuclear program.

Market sentiment in the crypto space has declined, with the Fear and Greed Index dropping to 33 points on Tuesday from 47 points the previous day. In other words, investors remain cautious and are limiting their exposure to high-risk assets.

Crypto Fear and Greed Index | Source: Alternative

Market participants may hesitate ahead of the Federal Reserve’s policy decision on Wednesday. While the general expectation is that the central bank will keep interest rates unchanged within the 3.50% to 3.75% range, attention is likely to turn to the press conference by Fed Chair Jerome Powell following the meeting.

Investors will closely watch Powell’s statements for clues about the policy outlook, especially amid ongoing Middle East tensions and rising inflation.

FedWatch Tool | Source: CME Group
BTC-3.06%
ETH-2.54%
XRP-2.7%
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SalemMabkhout
· 1h ago
Thank you for this information.
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