Cryptos Trade Higher Ahead Of Inflation Readings

Top-ranked cryptocurrencies are trading strong ahead of key inflation releases from the U.S. Positive inflows to Bitcoin Spot ETF products in the U.S. also supported market sentiment.

The consumer price inflation reading due on Wednesday is expected to show headline annual inflation declining to 2.6 percent from the current level of 2.9 percent. The core component of the annual readings as well as the month-on-month readings are all seen steady at current levels. The producer price inflation due on Thursday is also expected to be steady at current levels.

Amidst the cautious optimism that the Fed would commence monetary easing in the upcoming review, overall crypto market capitalization has jumped 2.4 percent to $2.01 trillion from $1.96 trillion a day earlier.

Bitcoin rallied 3.2 percent overnight to trade at $57,079.35, around 23 percent below the all-time high. BTC has however shed more than 3 percent in the past week while holding on to gains of close to 35 percent in 2024. The original cryptocurrency traded between $58,041 and $54,848 in the past 24 hours.

Data from Farside Investors on Bitcoin Spot ETF products in the U.S. showed a net inflow of $29 million on Monday versus net outflow of $170 million on Friday. Net inflows were previously recorded on August 26. Surprisingly, iShares Bitcoin Trust (IBIT) recorded outflows of $9.1 million for the first time since August 29. Grayscale Bitcoin Trust (GBTC) also recorded net outflows of $22.8 million.

Ethereum gained 0.76 percent in the past 24 hours to trade at $2,347.27, around 52 percent below the previous peak. Weekly losses exceed 6.1 percent whereas gains in 2024 have decreased to less than 3 percent. Ether traded between $2,379.79 and $2,274.12 in the past 24 hours.

Data from Farside Investors on Ethereum Spot ETF products in the U.S. showed a net outflow of $5.2 million on Monday, a tad lower than $6 million recorded on Friday.

4th ranked BNB (BNB) gained 2.4 percent overnight to trade at $520.17 whereas 5th ranked Solana (SOL) added 3.5 percent overnight to trade at $134.71.

24th ranked Artificial Superintelligence Alliance (FET) topped with overnight gains of 9.9 percent. 75th ranked Mantra (OM) and 100th ranked DOGS (DOGS) followed with gains of more than 9 percent. 47th ranked dogwifhat (WIF), 51st ranked Fantom (FTM) and 65th ranked Bitcoin SV (BSV) have also added more than 8 percent in the past 24 hours.

56th ranked Helium (HNT)is the greatest laggard, shedding 5.7 percent overnight. 50th ranked Maker (MKR) followed with losses of 3.6 percent. 15th ranked Chainlink (LINK) and 22nd ranked Uniswap (UNI) have also shed more than 2 percent in the past 24 hours.

Meanwhile, mixed labor market data from the U.S. that diminished the prospects of a 50-basis points rate cut by the Fed exacerbated outflows from digital asset investment products. The CoinShares’ Digital Asset Fund Flows Weekly report showed outflows of $726 million during the week ended September 7 versus outflows of $305 million a week earlier. Year-to-date flows have decreased to $21.7 billion. According to the weekly report, Bitcoin topped flows by asset, Fidelity topped flows by provider and United States topped flows by country.

Bitcoin-based products dominated with outflows of $643 million. Ethereum-based products also recorded outflows of more than $98 million. Solana-based products however received inflows of $6.2 million followed by multi-asset products that got inflows of more than $3 million. Short Bitcoin products also received inflows of $3.9 million.

Close to 80 percent of the cumulative AUM of $74.5 billion is attributed to Bitcoin products that account for an AUM of $59.3 billion. Bitcoin’s dominance of crypto market is much lower, at around 56 percent. AUM of Ethereum products stood at $9.1 billion. Multi-asset portfolios command assets under management of $3.9 billion. An AUM of $1.1 billion is attributed to Solana-based products and $498 million to Binance-based products.

The provider-wise analysis of flows inter alia shows outflows of $405 million from Fidelity ETF. Outflows of $260 million were also recorded from Grayscale Investments followed by $60 million from Bitwise ETF and $41 million from Ark 21Shares.
Despite the negative sentiment in global markets, iShares ETF recorded inflows of $5 million.

iShares ETF tops with a cumulative AUM of $19.9 billion implying a share of 26.7 percent. Though year-to-date outflows are more than $19 billion, Grayscale Investments still accounts for an AUM of $17.6 billion, which is 23.6 percent of the cumulative AUM of $74.5 billion. Fidelity commands an AUM of $9.2 billion, followed by 21Shares that has mobilized assets under management to the tune of $2.7 billion. The top 3 viz iShares, Grayscale Investments and Fidelity account for more than 62 percent of the total AUM.

The country-wise analysis shows massive weekly outflows of $721 million from United States. Canada recorded outflows of $27.9 million. Germany however recorded inflows of more than $16 million.

Of the cumulative AUM of $74.5 billion, $55.7 billion or 75 percent is in United States. Switzerland follows with AUM of more than $4.2 billion whereas Canada accounts for an AUM of $3.7 billion. Germany accounts for an AUM of $3.3 billion followed by Sweden with an AUM of $2.5 billion.

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