The cryptocurrency market is experiencing a significant change this Friday. Following BlackRock’s announcement of its intention to create an exchange-traded fund (ETF) of ethereum(ETH), the world’s main ‘altcoin’ is slowing down the rally other alternative cryptocurrencies.
However, Bitcoin is also benefiting in recent hours and is reaching a new annual high of US$37,900, its highest level since April 2022. Although it is currently trading just above $37,000, experts predict that the leading cryptocurrency will cThe year will fail with force.
For analysts, the resistance level between US$30,000 and US$31,000 is being surpassed. Experts consider that the next potential stop is US$45,000, highs last seen in March 2022.
Likewise, they highlight that the leading cryptocurrency is benefiting from the momentum of the ETH ETF, which reinforces the possibility that the Securities and Exchange Commission (SEC) could approve BTC exchange-traded funds. Additionally, it has emerged that the regulator has entered into talks with Grayscale over converting its flagship fund, Grayscale Bitcoin Trust (GBTC), into a spot ETF following the Commission’s defeat in court.
Bitcoin: what can happen to its price
Despite this, many experts warn that the market is overbought, describing recent increases as “exaggerated” and pointing out that optimism could be excessive, since futures ETFs have not convinced the market. Although the launch of several ETH futures ETFs disappointed analysts, expectations for the market’s largest ‘altcoin’ have changed drastically after this surprising development.
Likewise, experts point out that the risks to the growth of the cryptocurrency market are not the investment instruments associated with it, but rather the regulatory risks and the low confidence of the majority of investors.
On the other hand, the risks of fraud and piracy They may still be present in this market, although they are somewhat small compared to the total value of the market as a whole.but they are still frequent.
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