AAVE, Bitcoin & Crypto – European Wrap 5 March

Aave (AAVE), the native token of the Aave lending protocol, is rallying on Wednesday as the crypto market recovers from Monday’s bloodbath. Bitcoin (BTC), Ethereum (ETH), and XRP note small gains on the day as traders maintain a risk-averse stance in crypto, grappling with volatility concerns this week ahead of the White House Crypto Summit on Friday. 

Bitcoin (BTC) price hovers around $87,600 on Wednesday after finding support around $85,000 the previous day. US spot Exchange Traded Funds (ETFs) continued their outflows this week, totaling $217.7 million until Tuesday and signaling institutional demand weakness. Traders should be cautious as the upcoming first-ever White House Crypto Summit on Friday could bring volatility to BTC.

The crypto market has gained 4% in cap in 24 hours, but this looks more like a wild swing than the start of a recovery. The $2.87 trillion market remains below the long-term trend line of the 200-day moving average, near $3 trillion, and the initiative has shifted back to Bitcoin.