Daily News | Ethereum ETFs achieve positive weekly traffic growth for the first time, El Salvador's "Bitcoin City" receives $1.62 billion investment

2024-08-13, 04:38

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## Crypto Daily Digest: Ethereum ETFs achieve positive weekly traffic growth for the first time, with El Salvador's "Bitcoin City" receiving $1.62 billion in investment

**<a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> ETF achieves positive weekly traffic growth for the first time since its launch**

The US spot Ethereum exchange traded fund achieved positive net inflows for the first week since its launch on July 23. According to SoSoValue, an ETF tracking agency, in the week starting from August 5th, the total net inflow of 9 newly launched US spot Ethereum ETFs was $104.8 million. As of August 9th, the total trading value was $1.9 billion, and the total net asset value reached $7.3 billion.

Despite a 23% drop in <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">ETH price</a> in August, BlackRock still led the way with $188.4 million in funds flowing into the Ethereum ETFs.

**CEX <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> reserves reach a five-year low, with nearly $6 billion worth of BTC flowing out in the past month**

Starting from July 11, 2024, 993,08 Bitcoins worth approximately $5.96 billion have been transferred from CEX. According to Cryptoquant data, CEX currently holds approximately 2,679,880 Bitcoins (worth around $161 billion), hitting a new low since November 19, 2018.

The reserve of ETH has also shown a similar trend, with the exchange currently holding approximately 16.8 million ETH, a significant decrease from the historical high of 35.44 million on June 4, 2020.

**El Salvador receives $1.62 billion investment aimed at supporting the construction of a “Bitcoin City”**

The Salvadoran government said that Türkiye's holding company Yilport will invest $1.62 billion in two Salvadoran seaports, which is the largest private investment in the history of the country and is expected to support the construction of its "Bitcoin City".

Bitcoin City was first proposed in November 2021 as a tax-free city, with its funds coming from Bitcoin mined from electricity provided by local volcanoes. It is reported that El Salvador has found other sources of funding, including establishing a renewable Bitcoin mining partnership with <a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a> and offering a "free visa" program to wealthy Bitcoin users.

## Market Trends: Institutions stop buying stablecoins, Bitcoin falls below $60,000
Yesterday, the <a href="/price" target="_blank" class="blog_inner_link">crypto market</a> fell across the board, with a total of over 70,000 people experiencing liquidation and a liquidation amount of nearly $200 million. After experiencing a significant decline, the crypto market rebounded in price yesterday evening, with a slight reduction in the decline. In addition, according to data from The Block, DeFi dominance has fallen to its lowest level in three years (2.84%), the lowest point since early January 2021. Since September 2022, DeFi's dominant position has been around 4.8%, and this number has gradually shown a downward trend with occasional slight rebounds. In 2024, sectors such as Memecoin performed better than the market, while the launch of Bitcoin and Ethereum ETFs also attracted institutional interest, resulting in current market participants showing little interest in the performance of most DeFi tokens.

Bitcoin: Yesterday, Bitcoin fell below $60,000, with an intraday drop of 4.1%, hitting a low of $57,814.74 and currently hovering around $59,486.93. According to Lookonchain analysis, this decline may be due to institutions stopping their stablecoin buying frenzy, as they stopped receiving USDT from Tether Treasury and transferring it to exchanges two days ago. Analysts believe that if the price returns to $60,600, there may be a rebound. But the upcoming release of macroeconomic factors such as the US CPI may trigger further volatility. Some people expect the price to retest at $55000 before any potential increase occurs. The mining difficulty will also be reduced by 3.5%.

ETH: Yesterday, ETH also experienced a decline, hitting a low of $2,524.73 and currently hovering around $2,714.10. Recently, there have been various activity signals in the ETH market, such as the destruction rate dropping to its lowest level and the gas fee falling below 1 Gwei last weekend, indicating that the deflationary pressure on ETH has decreased or may lead to price stagnation; Whales who participated in the 2015 Ethereum ICO also transferred $154 million worth of ETH to CEX, suggesting a possible sell-off and further lowering the price.

## Macroeconomics: Geopolitical tensions trigger risk aversion, with gold and crude oil rising in the short term
The upcoming release of US consumer price data on Wednesday remains the main focus for investors this week. Federal Reserve Governor Michelle Bowman pointed out in an interview on Saturday that inflation has made some "welcome" further progress in the past few months, softening her usual hawkish attitude, but inflation remains "uncomfortably above" the 2% target.

The market expects the consumer price index for July to show inflation continuing to approach the Federal Reserve's annual target of 2%, with forecasts indicating a slight decline in core inflation annual rate to 3.2%, the lowest level since April 2021. Federal funds futures suggest a 49% chance of a 0.5 percentage point rate cut in September, while last week it climbed to 100%.

On Monday local time, a spokesperson for the White House National Security Council stated that Iran and its Middle East proxies may launch major attacks this week, and the United States and Israel are strengthening military deployments to respond to any unforeseen circumstances. Affected by this news, gold rose 1.68%, reaching the $2,470 mark and closing at $2,471.36 per ounce; US crude oil rose by over 3%, marking its fifth consecutive trading day of gains and reaching a new high since July 19.

<div class="blog-details-info">
<div>Author:**Jiji M.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>