BTC is up and L1s are down as flows turn messy again
The Nasdaq slipped yesterday after disappointing Q3 revenue from Oracle
Sundry Photography/Shutterstock and Adobe modified by Blockworks
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Performance across major assets diverged yesterday. Gold, BTC, and the S&P 500 posted gains of 0.95%, 0.55%, and 0.39%, respectively, while the tech-heavy Nasdaq slipped -0.12%.
The divergence was driven largely by Oracle, whose shares fell -11% after disappointing quarterly revenues and higher spending guidance. That miss reignited concerns around the durability of the AI trade and sparked a rotation out of tech and into lagging parts of the market, pushing the Dow Jones Industrial Average to fresh highs.
Crypto sector performance echoed the uneven tape. Despite renewed skepticism around AI, Crypto Miners were the standout performers, rising 4.5% on the day. IREN, which makes up 24% of the index, gained 4.4% and helped lead the move. DeFi followed with a 1.93% gain, driven by strength in AAVE, ENA, and HYPE, which together account for 44% of the index and all closed higher.
On the downside, DePIN continued to struggle, falling -3.2%. The sector was dragged lower by FIL and GRASS, which dropped -6.2% and -7.2%, respectively. L1s were another surprise laggard, down -2.5% on the day. Even with BTC in the green, most L1 constituents finished lower, with SEI and BERA both posting losses of -9%.
Flows remain a headwind. After a strong $346.2 million day of ETF inflows on Dec. 9, momentum faded again with both BTC and ETH ETFs seeing outflows of -$154.2 million and -$42.3 million, respectively, yesterday. The lone bright spot continues to be SOL ETFs, which are still attracting low single- to low double-digit millions in daily inflows.
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