U.S. stocks rose, with the Dow Jones Industrial Average hitting a record high again, and a tumultuous August finally ended with a gain. However, cryptocurrency ETFs are experiencing a cooling period, with Bitcoin and Ethereum still falling by more than 10% and 22% this month.
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TogglePCE in line with expectations, U.S. closed higher in August
The personal consumption expenditures (PCE) price index released yesterday (8/30) increased by 0.2% month-on-month and 2.5% year-on-year. In line with market expectations. The core PCE, excluding food and energy, was 2.6%, a monthly increase of 0.2%.
After a panic sell-off in early August, the market seems to have gradually calmed down and has recovered from the losses at the beginning of the month. The major U.S. indexes closed up in August, and the Dow Jones Industrial Average hit record highs many times, which also showed the rotation of funds and stocks. move.
Next Monday (9/2) will be a day off for Labor Day in the United States.
Cryptocurrency ETFs are experiencing a cooling period
The U.S. Bitcoin spot ETF market experienced a major decline on Thursday (8/29), with net fund outflows totaling US$71.73 million, and leading BlackRock IBIT also experienced a daily net outflow of funds for the first time since 5/1. Reflecting growing investor caution in the cryptocurrency space.
The Ethereum spot ETF is even more sluggish, because the net outflow of Grayscale ETHE has never stopped. Since its issuance and listing, there have only been a few 9-day net inflows of overall funds. The current total asset value of the Ethereum spot ETF is US$6.98 billion, which is 12% of the US$54.03 billion of the Bitcoin spot ETF.
ETH was affected by the liquidation of Ethereum by well-known crypto market maker Jump Trading at the beginning of the month. It once plummeted to around US$2,100. Although it gradually recovered, the cumulative decline in August was still as high as 22%.
Many analysts previously believed that this round of crypto bull market is different from the past. It is mainly driven by crypto ETFs and is greatly affected by traditional financial funds. Even if funds have withdrawn from AI stocks recently, they have flowed to more stable stocks. Large-cap stocks (the Dow Jones Industrial Index frequently hits new highs) or small-cap stocks that are highly affected by interest rates make the 2024 crypto market cycle full of variables.
