4 February 2025
Updated 5 February
Updated 5 February
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Ether Records Nearly $1 Billion Outflow from Exchanges Amid Price Crash
Ether experienced a sharp decline on Monday, influenced by concerns over a potential U.S. trade war. Key points include:
- Ether's price dropped to nearly $2,000 before recovering to around $2,800.
- Investors capitalized on the dip, with almost $1 billion worth of ether exiting centralized exchanges, marking the highest single-day net outflow since January 2024.
- Despite the recovery, bearish sentiment persists, as data indicates a reversal of the deflationary effect from Ethereum’s Merge.
Ether ETFs Trading Activity
On the same day, ether exchange-traded funds (ETFs) saw record trading volumes due to market volatility following tariff actions by President Trump:
- Approximately $1.5 billion traded across nine ETFs, with BlackRock's iShares Ethereum Trust (ETHA) capturing half of this volume.
- ETFs attracted $83.6 million in net inflows, primarily into Fidelity’s Ethereum Fund (FETH). ETHA did not see any net inflows.
Eric Trump encouraged followers to buy more ether on social media, contributing to the day's volatility and causing ether's price to spike to nearly $2,900 before settling at $2,780, reflecting a 3.5% increase over the previous 24 hours.