Crypto Markets Dip After Spot Bitcoin ETFs Record Massive Inflows

The cryptocurrency market traded lower on Tuesday, erasing the previous day’s gains fueled by massive inflows into spot Bitcoin ETFs.

Bitcoin (BTC) briefly spiked above $67,000 before reversing sharply and is changing hands for $66,100. Meanwhile, Ethereum (ETH) dipped 2% to $2,580. Solana (SOL) dropped 2%, while Polkadot (DOT) gained 1%.

Bitcoin has broken through a key resistance level of $63,000. Analysts at Bitfinex believe that holding this level could lead to further upside. But if not, Bitcoin might drop back to test support around $59,000 or $55,000.

Bitcoin ETF Inflows Top $550 Million

On Monday, spot Bitcoin ETFs recorded $556 million in net inflows, according to data from Farside Investors. The largest inflows to date came on June 4, when Bitcoin ETFs pulled in $887 million.

Nate Geraci, president of the ETF Store, pointed out that these flows are largely coming from institutional investors and financial advisors, not retail traders.

“Monster day for spot BTC ETFs…$550mil inflows. Simply ridiculous & blows away every pre-launch demand estimate,” he said, noting that nearly $20 billion has flowed into spot Bitcoin ETFs since their launch earlier this year.

Leading the pack was Fidelity’s Fidelity Bitcoin Trust (FBTC), which recorded $239 million in net inflows on Monday. Bitwise’s Bitwise Bitcoin Fund (BITB) came in second with $100 million, while BlackRock’s iShares Bitcoin Trust (IBIT) added $79.5 million.

Ethereum also had a good day, with spot Ether ETFs pulling in $17.07 million in net inflows. BlackRock’s iShares Ether Trust (IBIT) led the charge with $14.31 million, while Fidelity’s Fidelity Ether Trust (FETH) added another $1.31 million.

QCP Capital, a digital asset trading firm, pointed out that with both Kamala Harris and Donald Trump looking increasingly crypto-friendly, the upcoming U.S. election could be a win for the market, no matter who comes out on top.

“The absence of major inflation or labor data in the near term presents an opportunity for crypto to rise with lower risk premiums,” QCP Capital wrote.

U.S. stock markets dropped on Tuesday.

The Dow dropped by 0.25%, while the S&P 500 fell 0.4%, and the Nasdaq plunged 1%.