Crypto Climbs 1% as Wall Street Falls
The gain came alongside outflows from spot Bitcoin ETFs and weaker U.S. stocks. Polkadot also stood out after a vote on the dotUSD stablecoin.
Key Takeaways
- The crypto market rose more than 1% to $2.68 trillion, while U.S. stocks fell.
- Spot Bitcoin ETFs saw a net outflow of $46.65 million and lower trading volume.
- Polkadot jumped 13% to $1.20 after a vote on the dotUSD stablecoin.
The crypto market rose more than 1% since Monday’s close to $2.68 trillion (€2.3 trillion). That was the first green day after two red sessions. Notably, that happened while U.S. stocks fell and spot Bitcoin ETFs saw money flow out.
Wall Street Moved Lower
The crypto market closed 1.02% above the session low and last ended in the green on September 6. Wall Street reopened after Labor Day and moved the other way. The S&P 500 fell 0.58% to 7,673.52 and the Nasdaq lost 0.32%.
That weakness came alongside oil moving above $100 (€86) per barrel and a growing trade conflict between the U.S. and Canada. Expectations that the Federal Reserve could still deliver a rate hike later this month also kept the market on edge. Crypto has ignored that for now, which raises the question of who exactly was buying. That fits the broader picture that Bitcoin does not always move closely with rates; the correlation with U.S. bond yields is actually near zero according to recent analyses.
Money Flowed Out of ETFs
Not the big funds, at least not through spot Bitcoin ETFs. They started the new week with a net outflow of $46.65 million (€40.2 million), after three straight weeks of inflows worth $3.83 billion (€3.3 billion). Trading volume also fell to $2.41 billion (€2.1 billion), compared with $14.50 billion (€12.5 billion) a week earlier.
Total assets in those funds dropped to $99.52 billion (€85.7 billion), from $101.25 billion (€87.2 billion). That makes it likely that today’s first buying interest came mainly from the exchange side. For European crypto followers, that matters because it shows the market does not always move in the same direction as stocks or ETF flows. Earlier this summer, it was already clear how fast that picture can flip, when strong ETF inflows helped support Bitcoin’s climb.
Key Levels
Around $2.73 trillion (€2.4 trillion), there is still clear support for the crypto market. A daily close above that level would improve the picture further. Below $2.62 trillion (€2.3 trillion), the market already got through two red sessions, and a loss of that level opens the way to $2.59 trillion (€2.2 trillion) based on the current move.
Polkadot (DOT) looked much stronger. The token rose 13% in one day to $1.20 (€1.03) and is up 52% from a month ago. That came alongside a vote on dotUSD, a native stablecoin backed by DOT with $2.5 million (€2.2 million) set aside for minting and $2.5 million (€2.2 million) in DOT. The vote is still early, but it shows the market is once again looking selectively at altcoins beyond Bitcoin and Ethereum.
