- The crypto market rebounded from $3.79 trillion to $3.96 trillion.
- Ethereum ETFs attracted $455 million daily inflows compared to Bitcoin ETFs’ $88 million.
The cryptocurrency market experienced a recovery after a severe correction this week. Bitcoin and major altcoins were recording high gains as institutional demand came back into the space.
On Wednesday, the crypto market capitalization increased intraday from a low of 3.79 trillion to about 3.96 trillion. Bitcoin is trading at around $113,210.84 at the time of writing, up 2.15% in the last 24 hours.
Whale Activity Drives Market Recovery
The participation of large investors was very important in the market’s recovery. On-chain data showed whale movements in various networks.
The recovery period saw Tether mint USDT tokens worth $1 billion. This development typically signals bullish sentiment for crypto prices. An increase in USDT supply by Tether implies that institutional investors are planning to invest capital in digital assets. The so-called newly minted stablecoins enable large-scale Bitcoin and altcoin purchases.
Bitcoin network data indicate that whale accumulation increased drastically. Addresses containing 1,000 or more BTC grew by 13 since the start of August. This gives a total number of significant Bitcoin holders of 2,087 addresses.
Ethereum had the same whale interest. Ethereum addresses with more than 10,000 ETH increased by 48 wallets in the same time. The number of big Ethereum holders has reached somewhere around 1,275 addresses. Ethereum is trading at around $4,580.28, up 0.04% the last 24 hours.
ETF Inflows Favor Ethereum Over Bitcoin
Capital rotation from Bitcoin to Ethereum and other altcoins increased in recent weeks. The U.S. spot Ethereum ETFs by far exceeded their Bitcoin counterparts in investor inflows.
On August 26, BlackRock ETHE dominated Ethereum ETF issuers by the count of net inflows of up to 323 million. The total U.S. spot Ether ETFs had registered net inflows of $455 million for the day. Ethereum ETFs’ cumulative net inflows amounted to 13.33 billion.
As we covered in our latest report, BlackRock purchased Ethereum worth over $300 million in a series of recent transactions. The move signals renewed institutional interest in ETH alongside strong ETF inflows.
Bitcoin ETFs are seen to have recorded less impressive performance. U.S. spot Bitcoin ETFs, net inflows of $88 million. The IBIT of BlackRock registered inflows of $45 million, far less than its Ethereum product.
As we discussed earlier, JPMorgan expects the Fed to start cutting rates in September as labor data weakens. Trump-backed Fed board nominee Stephen Miran could influence decisions on future policy direction.
