Bitcoin and Ethereum ETF Inflows Boost Market Confidence Amid Fed Risks

Bitcoin (BTC) gained 0.09% on August 16, recovering slightly from earlier losses to close at $117,631. The US BTC-spot ETF market recorded inflows for two consecutive weeks, reversing much of the $1.332 billion outflows seen earlier in August. IBIT led the charge with over $1 billion in month-to-date inflows, reinforcing BTC’s stability. Meanwhile, Ethereum (ETH) dipped 0.41% but maintained strong ETF demand, with BlackRock’s iShares Ethereum Trust attracting $2.317 billion in weekly inflows.

Market sentiment remains cautiously optimistic as ETF flows offset broader financial risks. BTC trades above key moving averages, signaling a bullish trend, though $110K support is critical if momentum wanes. ETH also shows strength, trading well above its 50-day and 200-day EMAs, with investors eyeing the $5k milestone. Analysts highlight the historic performance of ETHA, which has seen only four days of outflows in 75 trading sessions, amassing $8 billion in new investments.

The coming week will be pivotal for crypto markets, with macroeconomic data and Fed policy decisions likely to influence trends. Traders are advised to monitor ETF flows, technical indicators, and global financial developments closely. The resilience of BTC and ETH amid volatility underscores growing institutional confidence in crypto assets.

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