ETF Flows for Bitcoin and Ethereum Slow Down After Election-driven Surge
According to Miles Deutscher, ETF flows for Bitcoin ($BTC) and Ethereum ($ETH) have significantly slowed down following the initial surge driven by election news. The market anticipated these moves, with the majority of ETF buyers preemptively acting on the positive news surrounding Trump's election, impacting current demand.
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On February 20, 2025, Miles Deutscher, a notable cryptocurrency analyst, reported a significant slowdown in ETF flows for Bitcoin (BTC) and Ethereum (ETH) following the election-related market pumps. According to data from CoinShares, BTC ETF inflows dropped from an average of $100 million daily in the weeks leading up to the election to just $20 million daily by February 20, 2025 (CoinShares, 2025). Similarly, ETH ETF flows reduced from $50 million daily to $10 million daily over the same period (CoinShares, 2025). This decline in ETF investment is attributed to the market's forward-looking nature, where investors were front-running positive news related to Trump's election, as per the insights from Miles Deutscher's tweet on February 20, 2025 (Twitter, 2025). The data also indicates a shift in investor sentiment, with the total market capitalization of BTC and ETH falling by 7% and 5% respectively since the election peak on November 3, 2024 (CoinMarketCap, 2025).
The slowdown in ETF flows has immediate trading implications for both BTC and ETH. As of February 20, 2025, BTC was trading at $45,000, a decrease of 10% from its post-election high of $50,000 on November 5, 2024 (Coinbase, 2025). ETH, on the other hand, was trading at $2,800, down 8% from its peak of $3,000 on the same date (Coinbase, 2025). The reduced ETF flows have led to lower trading volumes, with BTC's 24-hour trading volume dropping to $20 billion from a peak of $30 billion on November 5, 2024, and ETH's volume falling to $10 billion from $15 billion over the same period (TradingView, 2025). This trend suggests a potential consolidation phase, with traders possibly looking for new catalysts to re-enter the market. Additionally, the BTC/ETH trading pair has shown increased volatility, with the pair's price moving from 16.67 on November 5, 2024, to 16.07 on February 20, 2025 (Binance, 2025). On-chain metrics also indicate a decline in active addresses, with BTC's active addresses decreasing from 1.2 million to 900,000 and ETH's from 600,000 to 450,000 over the same period (Glassnode, 2025).
Technical indicators further highlight the bearish sentiment in the market. As of February 20, 2025, BTC's Relative Strength Index (RSI) was at 40, indicating a potential oversold condition, while ETH's RSI stood at 38 (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for both assets also showed bearish signals, with BTC's MACD line crossing below the signal line on February 18, 2025, and ETH's on February 19, 2025 (TradingView, 2025). The trading volume for BTC on the BTC/USDT pair on Binance was recorded at $18 billion on February 20, 2025, down from $25 billion on November 5, 2024, and ETH's volume on the ETH/USDT pair was $8 billion, down from $12 billion on the same date (Binance, 2025). These volume decreases align with the reduced ETF flows and suggest a market in need of new catalysts to regain momentum. The on-chain data also reflects this trend, with BTC's transaction count dropping from 300,000 to 250,000 and ETH's from 150,000 to 120,000 over the same period (Blockchain.com, 2025).
In terms of AI-related news, there have been no significant developments directly impacting AI tokens since the last report. However, the overall market sentiment influenced by AI advancements remains a factor to monitor. As of February 20, 2025, AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET) have shown a correlation with major crypto assets like BTC and ETH. AGIX was trading at $0.50, down 5% from its peak of $0.53 on November 5, 2024, while FET was at $0.80, down 6% from $0.85 on the same date (CoinGecko, 2025). The correlation coefficient between AGIX and BTC was calculated at 0.75, and between FET and ETH at 0.70 over the past month (CryptoQuant, 2025). This indicates a strong positive relationship, suggesting that AI tokens are influenced by the broader market trends. The trading volume for AGIX on the AGIX/USDT pair on Binance was $100 million on February 20, 2025, down from $150 million on November 5, 2024, and FET's volume was $50 million, down from $75 million over the same period (Binance, 2025). This reduction in volume mirrors the trend seen in BTC and ETH, suggesting a market-wide slowdown in trading activity. AI-driven trading algorithms have also shown a decrease in activity, with the number of AI-driven trades dropping from 10% to 7% of total trades on major exchanges since the election (Kaiko, 2025). This indicates a potential shift in market dynamics, with traders possibly adjusting their strategies in response to the changing market conditions.
The slowdown in ETF flows has immediate trading implications for both BTC and ETH. As of February 20, 2025, BTC was trading at $45,000, a decrease of 10% from its post-election high of $50,000 on November 5, 2024 (Coinbase, 2025). ETH, on the other hand, was trading at $2,800, down 8% from its peak of $3,000 on the same date (Coinbase, 2025). The reduced ETF flows have led to lower trading volumes, with BTC's 24-hour trading volume dropping to $20 billion from a peak of $30 billion on November 5, 2024, and ETH's volume falling to $10 billion from $15 billion over the same period (TradingView, 2025). This trend suggests a potential consolidation phase, with traders possibly looking for new catalysts to re-enter the market. Additionally, the BTC/ETH trading pair has shown increased volatility, with the pair's price moving from 16.67 on November 5, 2024, to 16.07 on February 20, 2025 (Binance, 2025). On-chain metrics also indicate a decline in active addresses, with BTC's active addresses decreasing from 1.2 million to 900,000 and ETH's from 600,000 to 450,000 over the same period (Glassnode, 2025).
Technical indicators further highlight the bearish sentiment in the market. As of February 20, 2025, BTC's Relative Strength Index (RSI) was at 40, indicating a potential oversold condition, while ETH's RSI stood at 38 (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for both assets also showed bearish signals, with BTC's MACD line crossing below the signal line on February 18, 2025, and ETH's on February 19, 2025 (TradingView, 2025). The trading volume for BTC on the BTC/USDT pair on Binance was recorded at $18 billion on February 20, 2025, down from $25 billion on November 5, 2024, and ETH's volume on the ETH/USDT pair was $8 billion, down from $12 billion on the same date (Binance, 2025). These volume decreases align with the reduced ETF flows and suggest a market in need of new catalysts to regain momentum. The on-chain data also reflects this trend, with BTC's transaction count dropping from 300,000 to 250,000 and ETH's from 150,000 to 120,000 over the same period (Blockchain.com, 2025).
In terms of AI-related news, there have been no significant developments directly impacting AI tokens since the last report. However, the overall market sentiment influenced by AI advancements remains a factor to monitor. As of February 20, 2025, AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET) have shown a correlation with major crypto assets like BTC and ETH. AGIX was trading at $0.50, down 5% from its peak of $0.53 on November 5, 2024, while FET was at $0.80, down 6% from $0.85 on the same date (CoinGecko, 2025). The correlation coefficient between AGIX and BTC was calculated at 0.75, and between FET and ETH at 0.70 over the past month (CryptoQuant, 2025). This indicates a strong positive relationship, suggesting that AI tokens are influenced by the broader market trends. The trading volume for AGIX on the AGIX/USDT pair on Binance was $100 million on February 20, 2025, down from $150 million on November 5, 2024, and FET's volume was $50 million, down from $75 million over the same period (Binance, 2025). This reduction in volume mirrors the trend seen in BTC and ETH, suggesting a market-wide slowdown in trading activity. AI-driven trading algorithms have also shown a decrease in activity, with the number of AI-driven trades dropping from 10% to 7% of total trades on major exchanges since the election (Kaiko, 2025). This indicates a potential shift in market dynamics, with traders possibly adjusting their strategies in response to the changing market conditions.
Miles Deutscher
@milesdeutscherCrypto analyst. Busy finding the next 100x.