Bitcoin (BTC) has surged past the $66,000 mark, showcasing a strong rebound in a market bracing for heightened fluctuations. Analysts attribute this uptick to fund outflows from the Grayscale Bitcoin Trust and anticipate further market swings ahead of the impending halving event.
Market Braces for Volatility
Semir Gabeljic of Pythagoras Investments highlights the market’s current volatility, noting that a significant factor has been the withdrawal of investments from ETFs. Meanwhile, QCP Capital’s latest analysis suggests that Bitcoin and Ethereum are experiencing a period of market consolidation, trading within tight bands.
QCP Capital forecasts a possible slowdown in activity over the weekend after experiencing significant fluctuations before the FOMC meeting. They have also observed a continued trend of outflows from the Grayscale Bitcoin Trust, with a notable $358.8 million net withdrawal.
Spot Ethereum ETF Prospects Diminish
The likelihood of a spot Ethereum ETF being greenlit in the US seems to be diminishing, as evidenced by the growing discount on the Grayscale ETH trust. Currently, the betting markets suggest a mere 21% chance of approval by the end of May.
Amid discussions about the potential ETF, the Ethereum Foundation has come under scrutiny from US regulatory bodies, including the SEC. This investigation has cast doubt on the classification of ETH and, consequently, the approval of an ETF.
Despite some optimism on Polymarket about ETH’s price reaching new heights, the broader market remains cautious about any imminent record-setting performances for the cryptocurrency this year.