A report by Nansen showed that the trade price of Ethereum cryptocurrency crashed today because of bearish sentiment among retail investors, not institutional investors.
The current trade price of Ethereum cryptocurrency is $2,579, which is down 3.5% over the last 24 hours. Many crypto investors claimed that the sudden crash in the trade price of ETH was due to the large amount of money outflow from U.S. Ethereum spot ETF products
Money inflow in digital assets investment products
The latest data by Coinshares reported that last week, digital asset investment products saw a $30 million inflow, with $42 million going into Bitcoin and $4.2 million into Ethereum. Meanwhile, Solana faced a record outflow of $39 million due to a sharp drop in Memecoin trading.
According to CoinShares, digital asset investment products received a total inflow of $30 million last week, with $42 million flowing into Bitcoin and only $4.2 million flowing into Ethereum. Due to a sharp drop in Memecoin trading volume, Solana had a net outflow of $39 million,…
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Ethereum spot ETF net outflow
The recent decline in Ether (ETH) price to $2,572, which is over 26% down since the launch of American spot Ether ETFs on July 23, is not solely due to spot ETF outflows. While the ETFs have experienced $420.5 million in net outflows since their launch, the broader crypto market is facing a significant recovery phase from a major sell-off.
The digital assets market is still rebounding from a sell-off that erased over $510 billion in value from the 50 largest digital assets, bringing Bitcoin and Ethereum to 5 month lows.
This sell-off was driven by broader market factors, not just the ETF outflows.
According to Nansen’s Barthere, the initial sell-off in March led to realized losses, particularly among crypto traders, and a subsequent sell-off correlated with equities occurred between July and August. This broader market turmoil, coupled with slower U.S. growth and high valuations in traditional assets, has contributed more to the current market conditions than the ETF capital outflows alone.
Read also: Crypto traders lose $1,500 on Tron blockchain supported Crypto wallet; is there a big danger?
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