Ethereum is falling faster than the broader market and more than Bitcoin, with spot ETF funds pulling out for eight straight days and erasing April’s recovery. The same major issuers that drove inflows at launch are now net sellers, indicating reduced institutional conviction. Bitcoin declines less because it has a large structural buyer, with a major strategy holding hundreds of thousands of BTC and adding more recently, creating a floor during ETF outflows. Ethereum lacks an equivalent buyer, so it trades more like a tech stock and drops more during risk-off moves. A Trump warning about Iran coincided with a selloff after regulated Bitcoin futures opened, alongside oil and equity futures moves, pushing ETH below key support levels.
"8 Straight Days of ETH ETF Outflows Erased April's $356M Recovery The last green day was May 8. Since then, the same funds that led the inflows when ETH ETFs launched in 2024-BlackRock's ETHA and Fidelity's FETH-have been the ones pulling money out. When the biggest issuers turn into net sellers, it reflects that institutional conviction has thinned."
"Why Ethereum Drops More than Bitcoin Every Time Markets Sell Off has dropped by 6% this week, while Bitcoin has dipped by 2.3%. The reason ETH falls steeper is because Bitcoin has a structural buyer that Ethereum doesn't. Strategy holds 843,738 BTC , a position worth roughly $64 billion, and added almost 25,000 more coins just this past week. With a buyer that size soaking up some of every ETF outflow, Bitcoin has a floor to fall back on. Ethereum has buyers too, but none big enough to offset what the ETFs are dumping."
"How Trump's Iran Warning Broke ETH's $2,200 Support Through May 11-15, ETH was declining daily but the $2,200 support was holding. Then by the weekend, Trump posted on Truth Social warning Iran that "the clock is ticking" and "they better get moving, fast, or there won't be anything left of them." CME Bitcoin futures are the first regulated crypto market to open after the weekend, so they price in the news before anything else. When they opened at 23:00 UTC on May 17, traders read the post as a war signal and started selling. Brent crude pushed above $112 a barrel within the hour, and S&P 500 futures fell 0.3%."
Read at 24/7 Wall St.
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