Crypto Markets Rebound as Ethereum ETFs Struggle

The crypto markets bounced back on Friday morning after a sharp selloff on Thursday, which resulted in $324 million in futures liquidations.

Ethereum (ETH) rose by 3% to $3,264, while Bitcoin (BTC) saw a 4.5% increase to $67,000. Solana (SOL) and Polkadot (DOT) also experienced a 3% rise. This rebound is likely an oversold bounce, a typical response following significant liquidations as traders perceive the assets as undervalued and begin buying, pushing prices up temporarily.

On Thursday, CoinGlass, an on-chain analytics platform, reported liquidations of $272 million in long positions and $52 million in short positions. Long positions are bets on price increases, while short positions bet on price decreases.

Data shows Ethereum spot ETFs continued to lose assets on their third trading day, despite an initial net inflow of $107 million on the first day. On Thursday, BlackRock’s Ethereum ETF saw $70 million in inflows, Fidelity’s FETH added $34 million, Bitwise’s ETHW logged $16 million, and VanEck’s ETHV recorded $8 million. However, these gains were overshadowed by the Grayscale Ethereum Trust (ETHE), which faced net outflows of $1.15 billion over the past two days.

In the political arena, Donald Trump's re-election campaign has collected approximately $4 million in cryptocurrency donations since May 2024, as reported in Q2 filings with the Federal Election Committee. Trump is scheduled to speak at the Bitcoin2024 conference in Nashville on Saturday.

In legislative news, Republican Senator Roger Marshall has withdrawn his support for the Digital Asset Anti-Money Laundering Act, a bill he co-authored with Democratic Senator Elizabeth Warren in 2022. As of July 24, Marshall’s withdrawal leaves 18 Senators still backing the legislation, according to official Congressional records.