Bitcoin and Ethereum saw a 3.5% decline on May 24, with Bitcoin trading around $67,000 and Ethereum at $3,670. This drop followed the announcement of US regulators approving the launch of spot Ethereum exchange-traded funds (ETFs), a development that failed to energize the markets as expected.
What’s Happening in the Crypto Market?
Despite the approval being a significant step for the crypto sector and a notable shift in the SEC’s stance, these ETFs are not yet available for trading. Analysts, including Bloomberg Intelligence’s James Seyffart and Eric Balchunas, suggest the launch might take several more weeks, possibly around mid-June.
As a result, BTC/USD and ETH/USD pairs did not experience a significant upward push, even retreating from their daily highs. The focus of market participants shifted to the interaction between these two leading cryptocurrencies.
Will Ethereum ETFs Impact Bitcoin Dominance?
Daan Crypto Trades observed the potential for Ethereum ETFs to challenge Bitcoin’s market dominance. He noted that Bitcoin’s dominance had been increasing for about 1.5 years but suggested that the approval of Ethereum ETFs could reverse this trend.
Other traders echoed this sentiment, highlighting that Bitcoin’s dominance, which reached 57% in mid-April, might be at risk of decline, possibly ushering in a new altcoin season.
Key Takeaways
Analyzing the market movements, popular trader Skew pointed out critical levels for Bitcoin price action:
- Price interest around $66,000 as a key area for potential buyer activity.
- Spot supply concentrated between $72,000 and $76,000.
- The week’s price movements were largely driven by spot trading on platforms like Binance and Coinbase.
Skew emphasized the importance of these levels in understanding market reactions and the absorption capacity of buyers in the current environment.
Conclusion
The recent approval of spot Ethereum ETFs marks a significant regulatory milestone, but the market’s muted response highlights the complexities of cryptocurrency valuations and investor sentiment. As analysts monitor how these developments unfold, the interplay between Bitcoin and Ethereum remains a focal point for traders and investors alike.