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Big investments take sides! Bitcoin attracts 180 million while Ethereum suffers abandonment.
Aug 29
I have observed a surprising division in the flows of crypto ETFs in the United States. Last night, the Bitcoin ETF received a net inflow of $179.36 million, while Ethereum suffered an outflow of $39.63 million. This divergence reveals radically opposing judgments about the two leading cryptocurrencies.
Institutions clearly prefer Bitcoin as “digital gold.” In this climate of macroeconomic uncertainty and rising inflation, its appeal as a safe haven has surged. Meanwhile, although Ethereum rose more than 20% last month, institutional investors are taking the opportunity to lock in profits and stay on the sidelines.
The problems of Ethereum are also related to the slow progress of its updates, fierce competition in DeFi, and regulatory ambiguity. The validator dynamics in its PoS network show contradictory signals: exits are decreasing but entries are increasing, indicating a fragmented confidence in its future development.
Technically, Bitcoin needs to surpass $114,500 to confirm its bullish trend, while Ethereum may face additional pressure if it falls below $4,270. This differentiation is likely to continue influencing the relative performance of both cryptocurrencies in the near future.
For us as investors, understanding this differentiating logic is crucial. The narrative of Bitcoin as a safe haven could strengthen, while Ethereum must regain institutional favor through technological innovations and improvements in its ecosystem.
Legal notice: Contains third-party opinions. Does not constitute financial advice. May include sponsored content.