CryptoBitcoinBitcoin Price Stagnates; Ether Rallies on ETF Progress

Bitcoin Price Stagnates; Ether Rallies on ETF Progress

Bitcoin‘s price remained relatively stable on Monday amid ongoing concerns about high interest rates ahead of crucial U.S. inflation data set to be released later this week. In contrast, Ether extended its rally following significant progress toward the approval of a spot exchange-traded fund (ETF).

Broader cryptocurrency markets saw little movement, as traders favored the dollar due to diminishing hopes for interest rate cuts by the Federal Reserve this year. Bitcoin experienced a slight decline of 0.3% over the past 24 hours, trading at $68,760.3 by 01:04 ET (05:04 GMT), maintaining a trading range established over the last two months.

Ether, the world’s second-largest cryptocurrency, surged 4.4% to $3,913.79, nearing a two-month high. This performance was bolstered by the U.S. Securities and Exchange Commission’s (SEC) approval of applications from several major exchanges to list ETFs that directly track Ether’s price.

SEC Approval Boosts Ether

The SEC‘s approval for the listing of spot Ether ETFs has paved the way for the commission to engage with fund operators such as VanEck, ARK Investment Management, and seven other issuers who have applied for similar listings. Analysts predict that this approval could trigger a significant rally in Ether, akin to the surge Bitcoin experienced following the approval of spot Bitcoin ETFs earlier this year.

However, Bitcoin has seen little movement in recent months after the initial excitement over the ETFs waned. Capital inflows into Bitcoin ETFs have also stagnated recently.

Altcoins and Market Sentiment

The anticipation of persistent high U.S. interest rates has exerted pressure on cryptocurrency markets in recent weeks. Several Federal Reserve officials have indicated that stubborn inflation could delay any plans to reduce rates, keeping altcoin prices largely subdued. XRP and SOL fell by 2% and 0.8%, respectively. Meme tokens such as DOGE and SHIB also declined, with DOGE dropping 4.3% and SHIB losing 1.6%.

This week, the market’s focus is on the Personal Consumption Expenditures (PCE) price index data, the Federal Reserve’s preferred inflation measure. The outcome of this data is expected to influence expectations regarding interest rates. Nonetheless, traders have largely ruled out the possibility of a rate cut in September, as reflected by the CME FedWatch tool.

Share This Post

Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

Related Posts

Whales Scoop Up 750 Million DOGE as Analysts Forecast Major Dogecoin Rally

Dogecoin has seen significant activity from large investors, or...

Gemini Considers IPO Amid Growing Crypto Sector Support Under Trump Administration

Gemini, the cryptocurrency exchange and custodian backed by the...

Brazil’s Central Bank Chief Highlights Surge in Stablecoin Usage Amid Regulatory Challenges

Brazil's central bank chief, Gabriel Galipolo, reported on Thursday...

Franklin Templeton Seeks Approval for Crypto Index ETF Amid Trump’s Pro-Crypto Stance

Franklin Templeton Investments has filed for regulatory approval to...

Bitcoin Dips 9%, But Analysts See Potential Upside Under Pro-Crypto Trump Policies

Bitcoin, the world’s largest cryptocurrency, fell 9% on Thursday,...

Bitcoin Holds Steady Despite Market Jitters, Says Bitdeer Executive

Bitcoin remains resilient despite recent market fluctuations, according to...