Bitcoin, Ether ETF Flows Hint at Incoming Altcoin Bull Run: Crypto Daybook Americas

As August draws to a close, two observations stand out. First, the month’s typical surge in volatility in both traditional and cryptocurrency markets has not materialized.

That’s probably driven by market expectations of forthcoming Fed interest-rate cuts combined with record fiscal spending—essentially an amplified “Goldilocks” scenario. Yet, it raises the question: How much stimulus is too much?

Second, institutional flows reveal a divergence between bitcoin and ether (ETH). The U.S. ether ETFs have registered a net investment of $3.69 billion this month, extending the four-month inflows streak. Bitcoin ETFs, in contrast, have seen an outflow of over $800 million, the second-highest on record. The difference is a sign of investor rotation into ether from its larger rival and possibly a bull run in altcoins ahead.

That brings us to the key trend to watch out for in the coming month: the boom in altcoin treasury companies.

Over the next 24 hours, BTC traders should keep an eye on $113,600, as this level may experience an increase in selling pressure from short-term traders who reach their breakeven. The market focus seems to be on smaller altcoins. The CoinDesk 80 Index was recently up over 4% on a 24-hour basis while the CoinDesk 20 Index added just 0.82%.