Ethereum Price to Hit $22k?
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Happy Friday,
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 performed well in price and on-chain activity. Nearly $4.7 billion worth of Bitcoin options expired on May 31st, which dented the price of Bitcoin, causing it to fall by about 1.5%.
As the markets wait to see the impact of both Bitcoin and Ethereum ETFs, we might observe 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
Markets have once again tried to breach the previous all-time high of $73k. This time, led by an increased inflow in Bitcoin ETFs, there was a strong rally in Bitcoin from $66.9k to $71.7k. However, the price met fierce resistance near $72k and soon backed down to $70k.
Meanwhile, memecoin markets have also started showing signals for a rally. However, despite chart pattern confirmations, there seems to be some hesitance for bulls to take control. This is due to two major events scheduled in June. The first is the US Fed meeting on June 11 and 12, in which it is expected to raise interest rates. The second event is the listing of spot Ethereum ETFs that were approved on the last day of May 2024.
Several different crypto narratives are also gaining focus in 2024. Themes like Bitcoin DeFi, Layer-3 applications, and asset tokenization have been waiting for a favorable environment for quite a while.
Global Market Overview
With renewed optimism, markets have turned more bullish than they were in early 2024. The Fear and Greed Index has shot up to 77, despite moving a notch lower than yesterday's 78. The bullishness primarily comes from the memecoin rally and strong performance in large-cap cryptocurrencies.
Now that crypto markets are about to top $2.65 trillion, bulls seem to have taken charge. However, sell-offs near resistance levels in Bitcoin are preventing it from creating a new all-time high.
The crypto market cap has comfortably crossed $2.6 trillion and now rests at $2.64 trillion. By the end of this weekend, we expect the market to cross $2.65 trillion and even form a new ATH.
Major cryptos supporting the markets include top cryptocurrencies like Bitcoin and Ethereum, followed by memecoins like Dogecoin, Shiba Inu, and Floki Inu. Leaders from last week's rallies, like BNB, seem to have taken a rest.
Market Watch
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This week, Floki Inu surpassed Shiba Inu and Dogecoin in trading volume. The crypto reached a new all-time high of $0.0003462 with a trading volume of $3 billion. Recently, old memecoins have been performing much better than new ones, possibly due to increased scams surrounding new memecoins.
Ethereum ETF provider VanEck has released research suggesting that Ethereum might rally to $22k by the end of this decade. The company compares Ethereum to "Digital Oil," signifying its role within the crypto ecosystem. The asset manager expects Ethereum ETFs to boost the price of ETH.
According to analyst, Michael van de Poppe, the altcoins are set to perform strongly, following Ethereum's beating of Bitcoin. Van de Poppe says that Polkadot is undervalued despite its strong fundamentals and thriving ecosystem, and is predicting a surge to $17.
Top Crypto News
K33 Research says that Ethereum ETFs might attract $4.8 billion in inflows into the newly approved funds. Other top analysts, like Eric Balchunas, agree with this view. However, Eric believes that the success might not replicate Bitcoin ETFs at scale, estimating that the inflows could be around one-fifth of those for Bitcoin ETFs.
SEC Chair Gary Gensler says it will take some time before individual ETH ETFs start trading on various exchanges. This is because the SEC needs time to review each S1 ETF application. However, experts have opined that a launch as early as July 4 might be possible.
The Howey Test acted as a prime facilitator for the approval of both Bitcoin and Ethereum ETFs. Without the test, the SEC would have easily won against Ripple Labs. Furthermore, if Ripple had not won against the SEC, the FIT-21 bill could not have classified cryptos based on their level of decentralization. This could have left the fate of crypto in a grey zone and prevented the ETFs from securing approval.
Top Video of the Week?
Is cryptocurrency the future of finance? Rob Eijgenraam dives deep into the world of crypto, discussing mainstream adoption worldwide, the issues with centralized currencies, and the latest on Bitcoin & Ethereum ETFs. But with all the hype, can you get rich with memecoins, or are they just a scam?
That’s a wrap for today!