On Wednesday, the ETH ETF recorded positive inflows as Bitcoin reserves on cryptocurrency exchanges hit their lowest levels this year.
Cryptocurrency markets rose on Thursday, buoyed by U.S. economic data that beat analysts’ expectations.
The number of unemployment insurance claims was slightly higher than expected, but gross domestic product (GDP) figures showed stronger growth than expected.
Bitcoin (BTC) rose 2% to trade above $60,000 and Ethereum (ETH) also rose 2% to trade at $2,550, while Polkadot (DOT) was flat and Solana (SOL) was down 1%.
Bitcoin reserves on cryptocurrency exchanges fell to 2.62 million BTC, the lowest this year, according to data from on-chain crypto analytics firm CryptoQuant, a drop that could signal weaker selling pressure in the market.
A CryptoQuant contributor (known on X as @gaah_im) suggests that Bitcoin’s low supply on exchanges could work in favor of the bull market, especially if demand continues to grow.
“The decline in reserves may also be related to the increased adoption of self-management strategies, where investors seek to exert greater control over their assets by storing them outside of a centralized brokerage environment,” the researchers added.
Flare (FLR) was the biggest winner among the top 100 cryptocurrencies, rising 12%. Helium (HNT) and ThorChain (RUNE) also performed well, rising 9% and 7% respectively, while TON-based meme coins DOGS (DOGS), Maker (MKR) and Notcoin (NOT) fell 8%, 3% and 2% respectively.
Unemployment claims and economic growth
The U.S. Department of Labor said Thursday that initial claims for unemployment insurance for the week ending Aug. 24 fell slightly to 231,000, slightly above the Dow Jones forecast of 230,000. The figure was down 2,000 from the previous week but indicates the labor market is gradually stabilizing.
In another positive sign, the Commerce Department reported that economic growth in the second quarter beat expectations, with real GDP growing at a 3% annual rate, beating the previous forecast of 2.8%, mainly due to a surge in consumer spending, which accelerated to a 2.9% pace.
Inflation rates were also adjusted, mostly downwards. The Fed’s preferred inflation gauge, the personal consumption expenditures (PCE) price index, was revised down to 2.5%.
Spot Ethereum ETF Records Positive Inflows
Spot Ethereum exchange-traded funds (ETFs) saw positive inflows after nine consecutive days of total outflows totaling $115 million. On Wednesday, the ETH ETF recorded a net inflow of $5.8 million.
BlackRock’s iShares Ethereum ETF (ETHA) led the way with $8.4 million in inflows, followed by the Fidelity Ethereum ETF (FETH) with $1.3 million in inflows. However, Grayscale’s Ethereum Trust (ETHE) continued to see outflows, recording $3.8 million in outflows, according to data from Far Side Investors.
Meanwhile, U.S. stock markets recorded positive performance on Thursday, with the S&P 500 up 0.7%, the Nasdaq Composite up 1.2% and the Dow Jones Industrial Average up 0.6%.
