Digital Asset Market Ends Lower Amid Broad-Based Weakness

The digital asset market closed the day on a bearish note, led by a 0.7% decline in Bitcoin (BTC) over the past 24 hours to settle at $111,794. Bitcoin’s prolonged stagnation in the low $110,000 range highlights ongoing market corrections. Large-cap altcoins followed suit, with most ending the session deeply in the red. Bearish sentiment grew within the futures markets, where notable declines were observed across major digital asset contracts.

CME Futures See Bitcoin and Ethereum Declines

CME Bitcoin futures for September contracts declined by 1.34%, closing at $111,960. Ethereum (ETH) fared worse, with its September futures plunging 3.28% to settle at $4,028.50. Longer-dated Ethereum contracts also continued their downtrend, with declines of 3.29% and 3.14% in October and November futures, respectively. The slump in futures contracts signaled waning institutional demand, reinforcing short-term pessimism across the market.

Macroeconomic Trends Add to Uncertainty

From a macroeconomic perspective, the U.S. Dollar Index (DXY) edged slightly lower, dipping 0.01% to 97.445. Simultaneously, the yield on the 10-year U.S. Treasury note fell 0.29% to 4.137%, reflecting concerns about peak interest rates. However, despite slight easing in these factors, the cryptocurrency market failed to gain any positive momentum, remaining firmly in a bearish trajectory.

ETF Fund Flows: Contrasting Trends for Bitcoin and Ethereum

Recent trading activity in cryptocurrency ETFs revealed diverging trends between Bitcoin and Ethereum. As of September 24, Bitcoin ETFs observed a robust net inflow of $241 million (approximately 337.6 billion KRW). Notably, the iShares Bitcoin Trust (IBIT) by BlackRock attracted $128.9 million (around 180.6 billion KRW)—the largest inflow of the day. Fidelity's FBTC fund followed at $29.7 million (roughly 41.6 billion KRW), while Ark Invest’s ARKB brought in $37.7 million (approximately 52.8 billion KRW). The Bitwise BITB fund contributed another $24.7 million (around 34.6 billion KRW) to the Bitcoin collective inflows.

Conversely, Ethereum ETFs experienced their third straight day of outflows, recording a net withdrawal of $79.4 million (approximately 111.2 billion KRW). Major outflows were led by BlackRock's ETHA fund, which saw $26.5 million (approximately 37.1 billion KRW) pulled out. Fidelity’s FETH fund followed closely, losing $33.3 million (about 46.2 billion KRW). These consistent outflows from Ethereum ETFs suggest an increasing preference among institutional investors for Bitcoin, considered by many as a safer digital asset amid volatile conditions.

Major Cryptocurrencies Post Broad-Based Losses

The day's declines extended across most large-cap cryptocurrencies. Ethereum led the fall, tumbling 3.93% to $4,013. Solana (SOL) slipped 2.86% to close at $204.50, while Dogecoin (DOGE) shed 2.89%. Tron (TRX) ended 1% lower, and Cardano (ADA) posted a modest decline of 0.41% to $0.79.

Weekly Performance: Steep Losses Persist

On a weekly timeframe, several altcoins recorded double-digit losses. Solana dropped by 17.09% over the past seven days, followed by Dogecoin at 17.06%, and Cardano at 13.72%. These prolonged declines have pushed many altcoins into oversold territory, as indicated by an average Relative Strength Index (RSI) of 37.16 for major tokens. The oversold conditions suggest potential exhaustion in selling pressure, though broader sentiment remains cautious.

Investor Sentiment Remains Neutral

Market sentiment, as measured by the Alternative Fear & Greed Index, held steady at 41, indicating a neutral stance for the second consecutive day. Bitcoin maintained its market dominance at 52.2%, with Ethereum’s dominance remaining static at 12.7%. The overall global cryptocurrency market capitalization fell 1.34% over the past 24 hours, now sitting at $3.83 trillion. Additionally, the CMC20 Index, which tracks the performance of the top 20 cryptocurrencies, declined by 1.56%, closing at 242.58 points.

Conclusion: Bearish Momentum Continues

Despite some easing in macroeconomic headwinds, the broader digital asset market continues to struggle under bearish momentum. Traders remain cautious amid fluctuations in futures markets, contrasting ETF flows, and persistent sell-offs in altcoins. With fear in the market subdued but optimism also missing, the sector remains in a holding pattern, awaiting a catalyst for clearer directional movement.