Bitcoin and Ethereum: A Week of $500 Million Gains Without Price Movement

Summary:
Despite strong inflows into Bitcoin and Ethereum exchange-traded funds (ETFs) last week, prices for these cryptocurrencies remained relatively unchanged. This article explores the reasons behind the stagnant price movement and the continuing growth of ETFs in the crypto market.

Key Takeaways

Bitcoin and Ethereum ETFs attracted over $500 million in inflows from December 8 to 12.
Bitcoin's price decreased by 2.16% to approximately $89.6K; Ethereum's price slipped 0.23% to around $3,127.
The lack of price movement despite substantial ETF investments suggests a shift in market dynamics.
Both types of ETFs continue to demonstrate strong capital commitment, with Bitcoin ETFs holding around $118.3 billion and Ethereum ETFs at $19.4 billion.

Bitcoin and Ethereum Market Analysis

Reason Behind Flat Prices

Bitcoin and Ethereum recently recorded a remarkable week in terms of ETF performance, but this didn’t translate into price hikes. From December 8 to 12, Bitcoin and Ethereum ETFs collectively gained a little over $500 million in net inflows, yet the prices of these cryptocurrencies remained fairly stable.

ETF Money Keeps Pouring In, Prices Remain Static

Bitcoin Net Inflows
Source: Farside Investors

During the week noted, Bitcoin ETFs saw net inflows of $287 million, significantly influenced by BlackRock’s IBIT, which enjoyed consistent daily increases despite experiencing a few mixed trading sessions.

Ethereum Net Inflows
Source: Farside Investors

On the other hand, Ethereum ETFs reported $209 million in weekly inflows. The leading products in this category include BlackRock’s ETHA and Fidelity’s FETH.

Market Capitalization Overview
Source: CoinMarketCap

However, during this period, Bitcoin [BTC] traded near $89.6K, which accounted for a decline of 2.16%, bringing its market cap to around $1.78 trillion. Simultaneously, Ethereum [ETH] was priced at about $3,127, only slightly down by 0.23%, and its market value was approximately $377 billion. This indicates that although capital is entering the market at a steady rate through ETFs, prices are not responding correspondingly.

Why Are Prices Flat?

The price stability noted in Bitcoin and Ethereum can be attributed to several market dynamics. Traders appeared to be absorbing news regarding a recent rate cut by the Federal Reserve, which, unexpectedly, did not create a price surge, as the impact was already anticipated in the market.

Bitcoin faced challenges in surpassing resistance levels between $92K and $94K, resulting in capped pricing. Traders remained cautious, contributing to a slow sentiment as December progressed.

As a result, Bitcoin maintained a price near $90,000 throughout the week, while Ethereum fluctuated between $3.1K and $3.2K. The demand for ETFs seems to be increasingly focused on long-term investments rather than short-term trading incentives.

Looking Ahead: ETF Growth in 2025

Bitcoin and Ethereum ETFs continue to see growth, even amidst prolonged phases of flat or descending prices.

Bitcoin ETF Holdings
Source: SoSoValue

Currently, Bitcoin spot ETFs manage approximately $118.3 billion in net assets, whereas Ethereum ETFs hold nearly $19.4 billion, indicating a strong commitment from investors.

Ethereum ETF Holdings
Source: SoSoValue

Even in weeks where price movements have been minimal, the substantial net inflows reveal a growing detachment between price and demand. If this trend of steady inflows with low volatility continues, future price movements may take many by surprise as market ownership dynamics shift while attention remains elsewhere.

Conclusion

The interplay between cryptocurrency inflows and price movements exemplifies the evolving landscape of the digital asset market. By focusing on ETFs, investors are likely positioning themselves for longer-term gains, potentially reshaping the market in the near future.