Bitcoin (BTC) has held critical support above $110,000 despite ongoing macroeconomic jitters and daily ETF outflows, as weekly spot ETF inflows of $250 million help stabilize the market. BTC’s performance this week has sparked debate among investors, as it continues to lag behind gold and the S&P 500, prompting speculation about whether cryptocurrency could “catch up” to broader market gains. 

Meanwhile, Ethereum (ETH) has faced stronger selling pressure, dropping to $4,283 amid ETF outflows totaling $446 million, highlighting a divergence between BTC and other major crypto assets. The article by BluSkyMint’s broker, Tony Harris, provides expert insight and a clear dissection of the topic.

Bitcoin Clings to $110,000 Amid ETF Flows

On Saturday, September 6, Bitcoin slipped 0.39%, following a minor 0.06% decline on Friday, closing at $110,263. Despite this pullback, BTC has maintained its position above $110,000 for the second consecutive session, a key psychological level for investors.

Bitcoin sentiment came under pressure following US BTC-spot ETF outflows, with Farside Investors noting net withdrawals of $160.1 million on Friday, September 5. Adding to the uncertainty, the US Jobs Report fell short of expectations. The unemployment rate edged up to 4.3% in August from 4.2% in July, while nonfarm payrolls rose by only 22,000, well below the economists’ forecast of 75,000.

However, weekly inflows continued to support BTC demand, with total weekly net inflows of $250.3 million, extending momentum from the previous week. Key contributors included:

• iShares Bitcoin Trust (IBIT): $434.3 million in weekly net inflows
• Grayscale Bitcoin Mini Trust (BTC): $33.2 million
• Fidelity Wise Origin Bitcoin Fund (FBTC): $25.1 million

Outflows from ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), and Grayscale Bitcoin Trust (GBTC) totaled $228.1 million, partially offsetting inflows. While these weekly inflows provided short-term support, they were insufficient to reverse August’s total net outflows of $749.2 million, keeping BTC below its record high of $123,731 (August 14) and trailing the S&P 500, which has gained 1.52% over the same period.

Ethereum Faces Heightened Selling Pressure

Ethereum (ETH) experienced a 0.75% decline on Saturday, September 6, closing at $4,275 after Friday’s 0.21% gain. This marked a continuation of profit-taking since ETH’s record high of $4,958 on August 24.

ETF flows have played a significant role in ETH’s performance, with US ETH-spot ETFs reporting net outflows of $446.8 million on Friday alone. This left weekly net outflows totaling $766.3 million, weighing heavily on market sentiment. As a result, ETH’s weekly decline of 2.54% has outpaced BTC’s 2.01% loss, reflecting the impact of ETF liquidity and market positioning on Ethereum.

Divergence With Gold and Equities

Despite BTC’s resilience around $110,000, a clear divergence is emerging relative to gold and equities. Gold has soared 7.43% this week, while the S&P 500 has gained 1.52%, challenging BTC’s reputation as digital gold. Investors are now closely monitoring whether BTC can “catch up” to broader market gains, particularly if ETF inflows continue to support buying pressure.

Key Drivers for BTC Price Outlook

Several macro and market factors are expected to influence BTC’s near-term trajectory:

• Legislative developments: Progress on the Market Structure Bill could positively impact crypto sentiment.
• US economic data: Upcoming CPI reports and Jobless Claims will likely affect investor appetite.
• Federal Reserve policy: Dovish or hawkish signals may determine BTC’s short-term momentum.
• ETF flows: Spot ETF inflows/outflows remain a critical factor for BTC demand.

Technical Analysis

Bitcoin (BTC) currently trades below the 50-day EMA but remains above the 200-day EMA, signaling a long-term bullish trend despite short-term pressure.

• Upside Target: A breakout above the 50-day EMA could test $115,000, with a sustained move opening the path to $123,731.
• Support Levels: $107,500 near-term support, $100,000 critical floor.

Ethereum (ETH) maintains a position above both 50-day and 200-day EMAs, suggesting a bullish bias despite weekly losses.

• Upside Target: Break above $4,500 may retest $4,958, with potential to reach $6,000.
• Support Levels: $4,085 and the 50-day EMA, with $3,563 as a longer-term floor.

Conclusion

Bitcoin’s recent performance highlights a key divergence from gold and equities, with weekly ETF inflows providing temporary support against daily outflows and macroeconomic uncertainty. While BTC clings to $110,000, Ethereum faces mounting pressure from ETH-spot ETF outflows, emphasizing the role of institutional liquidity in crypto markets. 

Technical indicators suggest both BTC and ETH retain bullish potential, though investor attention will remain focused on macro data, Fed policy, and ETF flows to determine the next major price move.