 ▲ Ethereum (ETH) vs Bitcoin (BTC) |
As Bitcoin and Ethereum simultaneously broke below key support levels, the market has rapidly contracted, with changes in institutional fund flows and controversy over network structure cited as key factors behind the decline.
According to cryptocurrency media outlet Bitcoinist on March 8 (local time), the price of Bitcoin (BTC) fell more than 3% over the past 24 hours, trading at around $67,000. The decline is believed to have been triggered by a sudden slowdown in demand for spot Bitcoin ETFs, which had been considered a primary channel for institutional capital inflows.
Data from SoSoValue shows that on March 5, spot Bitcoin ETFs recorded net outflows of approximately $228 million, halting the roughly $1.1 billion in inflows seen over the previous three days. The following day, outflows continued, with more than $348.8 million exiting in a single day. As a result, total assets under management for spot Bitcoin ETFs dropped from $94.57 billion to about $87.07 billion.
Alongside the institutional outflows, overall market selling pressure intensified. Major круп investors reportedly sold substantial amounts of Bitcoin, and selling volumes increased on leading exchanges such as Binance and Coinbase. Amid this trend, analyst Michael van de Poppe warned that Bitcoin could potentially decline further to the $60,000 to $48,000 range.
Ethereum (ETH) also failed to escape the downturn. Its price has fallen below $2,000 and is currently trading in the low $1,900 range, with criticism of its network economic structure further weighing on market sentiment. Short-selling research firm Culper Research argued that the Fusaka upgrade conducted in December last year expanded block capacity faster than transaction demand, leading to an increase in low-value transactions and spam activity.
Culper Research claimed that the upgrade weakened Ethereum’s tokenomics by reducing transaction fees, validator revenue, and staking yields. The firm also noted a rise in address poisoning attacks, increasing user losses. According to the report, at least $87 million in damages occurred over approximately three months following the Fusaka upgrade due to such attacks.
For these reasons, Culper Research disclosed that it has taken a short position on Ethereum, describing ETH as a “structurally impaired token.” With weakening institutional fund flows and ongoing debate over network structure overlapping, analysts suggest that both Bitcoin and Ethereum have entered a phase of short-term directional uncertainty.
Disclaimer: This article is for investment reference purposes only and we are not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.