Recent price surges have put Bitcoin (BTC) at risk of a short-term reversal, while the lackluster performance of Ether (ETH) futures exchange-traded funds (ETFs) has left crypto investors disillusioned.
Bitcoin’s Vulnerability
FxPro senior market analyst, Alex Kuptsikevich, suggests that Bitcoin may face a short-term risk of falling, despite its recent outperformance relative to the stock market. The failure to make a fresh attack on the 200-day moving average has raised concerns, and Bitcoin is now retracing amid increased stock market activity.
Ether ETFs Fail to Meet Expectations
Last week, both Bitcoin and Ether reached one-month highs following the launch of six Ether ETFs in the United States, sparking expectations of strong demand for these products. However, the reality was different. The combined trading volume across these ETFs amounted to less than $2 million on the launch day, with persistently low volumes throughout the week.
Some stats from the disappointing launch day for futures-based ETH ETFs.
Overall, the shallow flows depict a hollow market and a deficient demand for ETH exposure.
You may argue that futures-based ETFs are inferior to spot ETFs, to which I agree. This, however, does not… pic.twitter.com/76h63pbFvT
Some stats from the disappointing launch day for futures-based ETH ETFs.
Overall, the shallow flows depict a hollow market and a deficient demand for ETH exposure.
You may argue that futures-based ETFs are inferior to spot ETFs, to which I agree. This, however, does not… pic.twitter.com/76h63pbFvT
— Vetle Lunde (@VetleLunde) October 3, 2023
The disappointing performance of Ether ETFs led analysts to revise their bullish outlook and shift their focus towards Bitcoin investments. This sentiment weighed on Ether’s price, erasing nearly all of its gains from the past week. Meanwhile, Bitcoin managed to maintain its position above key support levels.
Stagnation in Crypto Majors
Over the last 24 hours, major cryptocurrencies have shown limited movement, driven by profit-taking earlier in the week and a lack of significant catalysts. Bitcoin declined by 0.5%, Ether slipped by 1%, and XRP and BNB Chain’s BNB remained relatively stable.
Cardano’s Positive Momentum
Cardano’s ADA tokens stood out as the only major cryptocurrency in the green, experiencing a 2.2% price increase. In contrast, toncoin (TON) saw an 8.8% surge without an immediately apparent catalyst, while Avalanche’s AVAX tokens continued their earlier-week gains with a 4% increase.
In summary, Bitcoin faces potential short-term headwinds, and the lackluster performance of Ether ETFs has caused a shift in investor sentiment towards Bitcoin. While crypto markets have remained relatively stable in the past 24 hours, some altcoins, like Cardano and toncoin, have shown positive momentum despite a lack of overall market catalysts.
