Daily News | BTC retreated sharply, hitting the largest single-day drop in 2 years

Crypto Daily Digest: Bitcoin turned bearish, data shows that ETH supply growth rate is lower than BTC

According to Farside Investors data, the U.S. Bitcoin spot ETF had a net inflow of $3.8 million yesterday, of which Ark ARKB received an inflow of $58 million and Grayscale GBTC received an outflow of $54.4 million.

Yesterday, Ethereum spot ETFs received $4 million in inflows, of which Bitwise ETHA received $4 million in inflows.

State Street: Crypto ETFs to Surpass North American Precious Metals ETFs by the End of the Year

According to the Financial Times, according to the forecast of State Street, the world’s largest ETF service provider, the demand for crypto ETFs has surged, and its total assets are expected to exceed those of North American precious metal ETFs by the end of this year. This change will make digital token ETFs the third largest asset class in the $15 trillion ETF industry, second only to stocks and bonds, and surpassing real estate, alternative investments and multi-asset funds.

Opinion: Bitcoin turned bearish, and market sentiment is impacted by macroeconomic factors

A few days ago, a crypto analyst pointed out that Bitcoin has turned bearish and its weekend gains have completely evaporated. Although Trump’s statement on crypto reserves briefly stopped the downward momentum, the underlying macroeconomic problems still exist. In the past few days, the price of Bitcoin has shown great volatility.

Last week, the crypto Fear & Greed Index fell to its lowest since 2022. There are several reasons why Bitcoin is so bearish at the moment: First, the macroeconomic situation is not bullish for cryptocurrencies. The Atlanta Fed GDPNow model expects US GDP to shrink by 2.8% by the end of the first quarter of 2025. From an economic perspective, the forecast is disastrous compared with the 3.9% growth predicted four weeks ago. Another important factor is Trump’s proposed tariff policy. However some analysts believe that tariffs are not the main reason. When Trump recently announced a 25% tariff on the European Union, the crypto market took a nosedive. In other words, macroeconomic factors largely influence the crypto industry’s market sentiment.

Data: ETH supply growth rate is lower than BTC

According to Forbes, Ethereum‘s supply has been growing slower than Bitcoin’s since its merger in September 2022, challenging the long-held assumption that Bitcoin is the best form of sound money. Unlike Bitcoin, which has a fixed cap of 21 million coins, Ethereum is designed to be adaptable, allowing its supply to expand or contract based on network activity.

Analysts believe Bitcoin ensures absolute scarcity, while Ethereum is more adaptable and flexible and can adjust according to market conditions. If sound money means supply growth, it has unexpectedly surpassed Bitcoin in recent years.

Market Trends: BTC retreated sharply, and Altcoins followed suit

Market Hotspots

SOL, XRP, and ADA, which surged yesterday, experienced a significant pullback, with declines of around 20%.

MOVE, CHEEL and ENA will have a one-time large-scale unlock this week, with an unlock value of more than $10 million.

Mainstream Coins

BTC fell again, trading around $83,747, a drop of 10.02%. This is the largest daily drop the currency has experienced since November 9, 2022, and market sentiment remains bearish.

ETH followed the broader market and fell to the $2,000 mark. On the funding side, the ETH ETF did not encounter a large-scale sell-off and continued to follow the market.

Altcoins generally fell, with TRUMP falling more than 25% in 24 hours, and BAKE, PENGU, and SAGA all falling more than 20% in 24 hours.

Macro News: U.S. stocks hit by tariffs, three major indexes closed down

The three major U.S. stock indexes closed down collectively, with the S&P recording its biggest drop of the year, down 649.67 points from the previous trading day. The Nasdaq wiped out its gains since last year’s election, falling 497.09 points.

U.S. manufacturing activity growth nearly stagnated in February, and the raw material payment price index hit a two-year high. The Atlanta Fed’s GDPNow model predicts that the U.S. GDP will shrink by 2.8% in the first quarter of this year, compared with a previous forecast of a 1.5% contraction. Bridgewater founder Ray Dalio warned that if the U.S. does not reduce its deficit, it will face a debt crisis within three years. Expectations for a rate cut by the Federal Reserve have further increased, with three rate cuts this year, each of 25 basis points.

Regarding trade, Trump reiterated that he would impose additional tariffs on Canada and Mexico starting on March 4, and would impose reciprocal tariffs on April 2. The US has “no room left” in tariff negotiations with Canada and Mexico. Canada responded by saying it was ready to retaliate, and that it was preparing to impose tariffs on US goods worth C$155 billion, with the first batch of tariffs targeting US goods worth C$30 billion. Canadian stocks and exchange rates fell, while sovereign bond prices rose.