Bitcoin is not living up to its reputation as digital gold, with ETF flows influencing prices.

From Investing.com

August 7, 2024 07:49:52 AM:

Spot ETFs are facing net outflows in their early weeks of trading, similar to Bitcoin ETFs when they first launched, according to Citigroup strategists. However, Ethereum’s recent price movements seem more influenced by equity markets than ETF flows.

Crypto’s limited diversification benefits are evident in recent market corrections, as noted by Citi analysts. Bitcoin, often considered “digital gold,” has not shown the same ‘store of value’ properties as gold, failing to act as a safe haven in recent market turmoil.

Bitcoin ETFs have attracted $19.1 billion in net inflows as of August 5, explaining a significant portion of Bitcoin’s price action variance. In contrast, ETH ETFs have seen $460 million in net outflows, reflecting different investor behaviors towards Bitcoin and Ethereum.

Despite market turbulence, crypto fundamentals have remained solid. Search interest in cryptocurrencies is up, stablecoins have maintained stability, and decentralized exchange volumes are growing. While Ethereum network activity slowed, Bitcoin activity has stayed relatively steady.

Hash rate for cryptocurrencies has been volatile but is trending higher recently, and decentralized exchange volumes are increasing compared to centralized volumes. Overall, despite recent market challenges, certain crypto fundamentals are showing resilience and growth.

Read more at Investing.com: Bitcoin hasn’t yet lived up to its reputation as “digital gold,” says Citi By Investing.com