Election jitters and ETF outflows weigh on crypto market – Nansen

Election anxieties and outflows of funds from exchange-traded funds (ETFs) are putting pressure on the crypto market, according to a report by Nansen. Both Bitcoin and Ethereum ETFs have experienced negative flows for the second consecutive week, with over $983 million and $103.5 million lost respectively. The decrease in stablecoin supply and the withdrawal of institutional interest in Ethereum-based products suggest investor capitulation. Nansen’s risk management indicators show negative BTC price momentum, while Bitcoin and Ethereum are testing critical support levels. The upcoming US presidential election is expected to create uncertainty, and macroeconomic data indicates weakness in manufacturing activity and the labor market. The ambiguity surrounding the global economy and the Federal Reserve’s projected rate cuts further add to investor risk aversion.