Bitcoin Experiences Pullback After $50K Peak Amid High U.S. Inflation; Franklin Templeton Eyes Ethereum ETF
Summary:
Bitcoin's value saw a decrease after surpassing $50,000, due to U.S inflation rates exceeding expectations, but the bullish sentiment within the crypto market remained unimpeded. Meanwhile, competition for Ethereum ETFs is growing, with Franklin Templeton becoming the latest to submit an application. The asset management firm also revealed plans to stake a portion of the ETF's Ether for further income.
Bitcoin's value experienced a decrease after crossing the $50,000 mark on February 13, following an unexpectedly high inflation report from the U.S. government. This, however, didn't dampen the bullish sentiment within the crypto market, with the index that measures this sentiment hitting its highest point since 2021. Furthermore, the competition heats up for Ethereum ETF as Franklin Templeton becomes the latest entrant.
The plunge in Bitcoin and across the crypto market on February 13 came as a result of strong inflation figures out of the U.S., thereby negating the chances of a rate cut in March. Bitcoin's price dipped almost 4% to $48,435, as per Cointelegraph Markets Pro and TradingView data, though it managed to recover above $49,000 later on.
The U.S. Bureau of Labor Statistics reported a drop in Consumer Price Index (CPI), a key inflation indicator, to 3.1% in January. This was a decline from December's figure but still exceeded predictions of a fall to 2.9%. This made investors discount any possibility of the Federal Reserve slashing interest rates in the March FOMC meeting as expected earlier.
Despite this, Bitcoin's price has seen an overall 14% growth over the past week. The cryptocurrency touched the $50,000 mark on February 12 for the first time in more than two years.
The Crypto Fear and Greed Index - that gauges market sentiment - reached levels unseen since Bitcoin notched up its record high of $69,000 in November 2021. As per Alternative.me, there was a jump in the index to 79 on February 13, not long after Bitcoin surpassed the $50,000 level a day earlier. The cryptocurrency has been on a steady rise over the recent months, registering a 13% gain year-to-date based on CoinGecko data.
On February 12, Franklin Templeton, the asset management giant with $1.5 trillion under management, applied for a spot Ether exchange-traded fund in the U.S. If accepted, it would be listed as "Franklin Ethereum ETF" on the Chicago Board Options Exchange. Franklin Templeton also indicated its plan to stake a portion of the ETF's Ether for additional income, in the same vein as ARK 21Shares in their revised S-1 filing last week.
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Published At
2/13/2024 10:51:57 PM
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