Key Points
- Bitcoin and Ether witnessed a 3.5% decrease in trading on May 24, despite significant institutional developments.
- The approval of spot Ether exchange-traded funds (ETFs) by US regulators did not immediately stimulate the market.
Bitcoin and Ether Fail to Impress Despite ETF Confirmation
On May 24, both Bitcoin and Ether experienced a 3.5% decline in their trading value. This occurred despite the anticipation of a significant institutional milestone.
The price of Bitcoin hovered around $67,000, while Ether was priced at $3,670. This was the market reaction to the news that US regulators had given the green light to spot Ether ETFs.
ETF Approval: A Major Accomplishment for Crypto
The approval of the ETFs is a significant achievement for the cryptocurrency industry and represents a dramatic shift in policy for the Securities and Exchange Commission (SEC). However, the ETFs are not yet ready for trading. Market analysts predict that additional preparations could delay the launch date by several weeks.
James Seyffart and Eric Balchunas, dedicated ETF analysts at Bloomberg Intelligence, suggested a potential mid-June launch date.
Despite the ETF approval, the prices of Bitcoin and Ether did not surge, even falling from local highs at the end of the day.
Market Dynamics and Dominance
Traders showed more interest in the dynamics between the two largest cryptocurrencies, Bitcoin and Ether. Daan Crypto Trades, a popular trader, predicted that Bitcoin's share of the overall crypto market cap could be significantly challenged once the Ethereum ETFs are launched.
Bitcoin's dominance reached 57% in mid-April, just before its block subsidy halving. This was the highest level in over two years.
Bitcoin Price Reaction and Liquidity
Skew, a well-known trader, identified a zone of interest around $66,000, where he predicted buyers might step in if Bitcoin's price fell.
He also pointed out that there was initial spot demand around $66K - $65K. He highlighted that the week's price run had been driven by spot exchanges, with both Binance and the largest U.S. trading platform Coinbase playing significant roles.
