Bitcoin and Ether Prices Dip Despite U.S. Approval of Ethereum ETFs
Summary:
Bitcoin and Ether experienced a 3.5% decline on May 24, despite the U.S regulators' approval of spot Ether exchange-traded funds (ETFs), an important institutional development. The two largest cryptocurrencies did not surge on the news, with the launch being possibly postponed to mid-June. Traders observe this as an opportunity for an "altseason," with Bitcoin's share in the overall market cap likely to be challenged upon the Ethereum ETFs' launch. Technical indicators suggest investor intervention might begin around the $66,000 mark for Bitcoin.
On May 24, Bitcoin (BTC) and Ether (ETH) witnessed a drop of 3.5% despite market expectations from an important institutional development. As per data from Cointelegraph Markets Pro and TradingView, the price of BTC hovered around $67,000 and ETH was priced at $3,670.
The subtle reaction of both digital currencies was linked to the recent decision by US regulators to green-light the launch of spot Ether exchange-traded funds (ETFs). While this decision marks a huge victory for the cryptocurrency industry and indicates a change in approach by the Securities and Exchange Commission (SEC), the ETFs are not yet available for trading. Market analysts speculate that it could take a few more weeks for the ETFs to be ready for trading, thus postponing their potential launch date.
James Seyffart and Eric Balchunas, ETF analysts at Bloomberg Intelligence, hypothesize a mid-June launch. Consequently, neither BTC nor ETH experienced a sudden surge, and instead, witnessessed a drop in local prices prior to daily closure.
The day's focus was primarily on the interrelation between the two primary digital currencies. Renowned trader, Daan Crypto Trades, pinpointed the likelihood of Bitcoin losing significant market cap share upon the launch of the Ethereum ETFs. He noted that Bitcoin's market dominance has been on an incline for around 1.5 years, and it could potentially reverse with Ethereum leading on the heels of the ETF approval.
Other traders acknowledged this potential threat to Bitcoin's upward swing as a possible precursor to an 'altseason.' Bitcoin's dominance in the market reached 57% in mid-April - the highest in more than two years, just before the reduction in its block subsidy.
Considering how low Bitcoin's price might plummet before investors intervened, Skew, a renowned trader, pointed to the significance of the $66,000 range. He further elaborated that several bid liquidity patches were present on Binance, the largest global exchange. He also noted that this week's price progression was 'driven by spot exchanges,' including both Binance and the largest U.S. trading platform, Coinbase.
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Published At
5/24/2024 12:18:11 PM
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