He cryptocurrency market experience a drop this Friday. Bitcoin (BTC) intensifies its losses and falls to US$64,600, while Ethereum (ETH) loses 2% in the last 24 hours, putting the US$3,500 barrier at risk.
The situation in the ‘altcoin’ market is not improving either. Among major tokens, only toncoin (TON) and tron (TRX) show moderate rises in the last day. Large-cap cryptocurrencies such as solana (SOL), XRP, dogecoin (DOGE), cardano (ADA), shiba inu (SHIB) and avalanche (AVAX) record drops of up to 3%.
Digital assets continue to suffer from a lack of positive catalysts as impact news has been scarce in recent days. Currently, statements from the Securities and Exchange Commission (SEC) regarding the possible approval of ETH exchange-traded funds (ETFs) cash this summer are practically the only hope in a market that otherwise seems quite dull.
Bitcoin: what the market analyzes
Some analysts highlight that the expectation about the impact that these ETFs could have on the price of ETH is negatively affecting the rest of the ‘altcoins’. For example, data from TradingView and Binance show that the SOL/ETH pair in US dollars has fallen to its lowest level since early March. Experts believe that a bearish pattern is forming that could continue to put downward pressure on this and other alternative cryptocurrencies.
In contrast, other analysts are more cautious about the potential of spot ether exchange-traded funds, believing they are unlikely to attract as much institutional interest as bitcoin did. Therefore, the volatility observed in the prices of the largest ‘altcoin’ in recent weeks would be “unjustified.”
In any case, the truth is that there is a predominant feeling of caution in the market. This is due to various factors, such as the tougher stance of the Federal Reserve (Fed), which foresees only one interest rate cut between now and the end of the year, and the seemingly unstoppable rise of technology stocks, especially those linked to artificial intelligence (AI), both by investors and some companies in the cryptocurrency mining sector.
In the business field, two pieces of news stand out. On the one hand, the VanEck Bitcoin ETF (VBTC) fund began trading on the Australian Stock Exchange (ASX), being the first fund listed in the ocean market. This fund provides exposure to bitcoin by investing in HODL, VanEck’s US-listed BTC spot ETF, and was up 1% in its first session.
On the other hand, MicroStrategy continues to accumulate bitcoin and has acquired another 11,931 tokens for approximately $786 million, according to the company itself. The company, led by Michael Saylor, is the largest institutional holder of bitcoin and, as of the end of April, held about 214,400 tokens of the leading cryptocurrency.
Following this purchase, MicroStrategy’s total holdings are worth approximately $15 billion. It should be noted that the company has recently issued debt to continue buying bitcoin, a strategy that seems to be bearing fruit, since its shares have risen 60% since it began accumulating BTC four years ago.
Finally, the Winklevoss brothers, founders and leaders of the Gemini exchange, have announced donations of one million dollars to the campaign of Donald Trump, the Republican Party candidate for the December presidential elections. “In recent years, the Biden administration has openly declared war on crypto.
He has armed multiple government agencies to intimidate, harass, and sue the good actors in our industry in an effort to destroy it. “President Donald J. Trump is the pro-bitcoin, pro-crypto and pro-business option,” said Tyler Winklevoss, CEO of Gemini, in a post on that Trump wins the elections.
Source: Ambito
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