BTC recently gained 1.3% over the past 24 hours, while ETH has jumped 2.8% in that timeframe.
The second largest crypto asset’s rise comes after Ethereum ETFs snapped a streak of two consecutive days of outflows by bringing in more than $73 million on Tuesday, according to data from Farside Investors.
Bitcoin ETFs extended their streak of outflows, albeit with net outflows dropping to $196 million on Tuesday, compared to $333 million on Monday and $819 million on Friday.
Analysts remain undeterred by recent outflows and the market dip which has brought Bitcoin 6% off its mid-July all-time high.
“Historically, when you zoom in to prior bull markets, it’s never ‘up only.’ Instead, bull markets often are accompanied by volatility, and lots of it,” Bitwise Head of Research Ryan Rasmussen told Decrypt.
“The bull market we are currently in is no different. For starters, when prices run up to all-time highs, traders get over-excited, and they add leverage. Then, when the price moves down, they are forced to sell or get liquidated. That leads to short-term, whip-saw like sell-offs and rebounds. That’s exactly what we’ve experienced over the past week.”
Liquidations topped nearly $900 million on Friday as Bitcoin sank to around $113,000 and Ethereum and XRP, a Ripple-linked asset, dropped to $3,500 and $2.92.
Prices have all rebounded as of Wednesday though, marking negligible weekly losses of between 1% and 3% for the aforementioned trio.
Other leaders, like Solana and BNB joined the rebound, each jumping more than 3% in the last 24 hours, outperforming the entire crypto market which has gained just 1.8% in the last day according to data from CoinGecko.
“We are long-term oriented at Bitwise. Our long-term view is that, despite the expected and likely ongoing bouts of short-term volatility, we are in a prolonged multi-year bull market,” Rasmussen said. “We view the volatility along the way as an opportunity for investors to strategically position their portfolios for the long-term growth of crypto.”
