Crypto traders were left biting their nails this week as Bitcoin (BTC-USD) and Ethereum (ETH-USD) both saw a significant dip. Bitcoin started the week with a 3% drop, falling below $58,400, marking a decline of 5% in the broader market. This dip came just as investors prepared for a highly-anticipated Federal Reserve rate cut, which could have a big impact on market sentiment.
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Bitcoin ETFs See Big Inflows Despite Drop
Even with Bitcoin’s rough start, there’s still some optimism in the air. Bitcoin ETFs listed in the U.S. saw major inflows of over $263 million, the highest since July 22, signaling continued interest from investors despite the market’s dip, according to CoinDesk. On the other hand, Ethereum ETFs saw smaller inflows of $1.5 million, hinting that while there’s still interest, it’s not as strong as Bitcoin.
Ethereum Faces Competition Amid Market Drop
Ethereum led the losses, falling by 5.5%, marking its worst day since early August. This drop coincided with increasing competition, as new chains like Solana (SOL-USD) and Base have started to capture more attention. Meanwhile, Sony’s Soneium blockchain announced that USDC (USDC-USD) would be offered on its network, potentially challenging Ethereum further.
As the market braces for the Fed’s rate cut decision, crypto traders may need to watch out for increased volatility. At the time of writing, Bitcoin and Ethereum are priced at $59,064.34 and $2,327.79, respectively.
