Will Ethereum ETFs Be a Success?
Voice of Crypto
Bridging the gaps in the crypto, web3 and blockchain space by being the 'Voice of Crypto'
Happy Saturday??
With analysts expecting lackluster performance from Ethereum ETFs, the price of ETH seems stuck. Bitcoin, too, has a sideways price trend and is stuck just below $70k.?
On the broader market side, memecoins have been doing well in terms of price and on-chain activity. Nearly $4.7 billion worth of Bitcoin options expired on the 31st of May. This expiry did dent the price of Bitcoin, which fell by about 1.5%.
As the markets wait to see the impact of both Bitcoin and Ethereum ETFs, we might see some interesting price trends in the future. Additionally, reg-tech could become an interesting narrative in 2024 as more countries move forward with crypto regulations.
Crypto Market Summary
Though the markets have seen a few rallies in select cryptocurrencies, overall health seems better than at the last peak in November 2021. With better regulations, there has been a focus on customer-centric products this time. The best examples are the Bitcoin and Ethereum ETFs, which have made it easy for anyone with a trading account to invest in crypto.
However, analysts still want to watch the performance of Ethereum ETFs, with some even predicting them to be a lot less successful than Bitcoin ETFs.
On the memecoin side, there has been a continuation rally, with the overall market gaining 1313% in 2024. Altcoin markets, too, have shown initial signs of an "altcoin season." Altcoins, with a market cap of $1.2 trillion, have shown young shoots. The growth of altcoins has been evident from the shrinking Bitcoin market dominance, from 54% to 52.8%, and a subsequent rise in Ethereum’s dominance, from 15.4% to 18%. As more news on altcoin ETFs emerges, the much-awaited altcoin season seems ready to put on a show.
Global Market Overview
As opposed to the new Bitcoin ATH around November 2021, the markets are taking ample time this time. Corrections between the rallies are preventing sentiments from rising so high that they come crashing down soon.
This week, market sentiments have remained almost the same as the previous week, with a minor fall of 4 points in the index score. This week, the score of 72 shows that the markets are still bullish, but this time with some patience.
The crypto market cap has comfortably crossed $2.5 trillion and now rests at $2.53 trillion. By mid-week, the markets tried to stay above $2.6 trillion; however, the move was unsustainable and a slight price correction occurred.
Major cryptos supporting the markets are Bitcoin, Ethereum, BNB, and mostly memecoins. Additionally, we expect Solana, Dogecoin, and Shiba Inu to rally further, which might take the markets to a new all-time high.
Market Watch
领英推荐
On-chain activity shows that whales have been amassing massive quantities of Bitcoin and Ethereum. At least 10 Bitcoin addresses have been accumulating BTC. In the case of Ethereum, several wallets that hold at least 0.1% of the total ETH supply have also been accumulating ETH. There has also been an increase in large transactions above $100k.
Bitcoin has been trading with a bullish overtone despite selling pressure from miners. Ethereum, which rallied 30% last week, is now ready to cross $4k along with some select altcoins. Another pump for Ethereum might be coming from ETF demand. There has also been a bullish divergence in Ethereum charts along with increased trading volume.
Well-known crypto analyst Michael van de Poppe has predicted that crypto markets will make at least 5x gains before the current bull cycle ends. Poppe expects a $355k target for Bitcoin, a $22.5k target for Ethereum, and a $1k target for Solana.
Top Crypto News
Despite the approval of Ethereum ETFs, the ETH price only rallied 30% and then cooled down. Experts now expect ETH to reach $4500 once demand from ETFs and institutional investors kicks in. Around $1 billion to $2 billion in inflows is expected to arrive in these approved ETFs, which would then drive the price up.
Top crypto analyst Noelle Acheson, who previously served as the Head of Market Insights at Genesis Global, now thinks that Ethereum ETFs might not be as successful as Bitcoin ETFs due to the lesser hype around Ethereum ETFs. However, other analysts believe it is too soon to determine whether these ETFs will impact the ETH price.
According to an online study conducted by Preply, a large number of investors in the US crypto markets have little to no knowledge of blockchain technology or how crypto works. The shocking report highlights the vulnerability of these investors and their susceptibility to phishing, scams, fraud, and manufactured rumors.
Top Video of the Week?
On the sidelines of Token 2049, Aki Balogh and Madiha Khan discuss the future of finance. Aki explains how the future would look like for crypto, now with better regulatory support. He also dives deep into the US crypto economy which he believes is still in the experimental stage. Join them for a lively discussion about the topics that directly impact your future.
That’s a wrap for today!