Ethereum Price Surges After BlackRock’s Registration of Ethereum Trust
The price of ether increased by more than 10% following BlackRock’s registration of an Ethereum Trust in Delaware and a spot Ethereum ETF with Nasdaq. Markus Thielen, Head of Crypto Research and Strategy at Matrixport, called it a “nuclear winter for everybody who doubted Ethereum.” He stated that a massive short squeeze occurred overnight in ether, resulting in total panic for shorts. Trading firm QCP Capital attributed ether’s outperformance over bitcoin to the BlackRock filing.
According to The Block’s price data, cryptocurrencies traded over $100 billion in volume during the last 24 hours. Bitcoin witnessed $34 billion in trading volume, ether $47 billion, and tether $69 billion. Ether rallied to a high of $2,134 overnight and currently trades at $2,098. Meanwhile, Bitcoin dropped around 4% before the BlackRock news but continues to trade above the $36,000 level at $36,931.
Ethereum Sentiment Indicators and Trading Volume
Markus Thielen suggested that sentiment indicators on the ether/bitcoin ratio indicated that higher beta trades could offer great returns. He also noted an increase in ether’s trading volume and a rise in the perpetual futures funding rate for both bitcoin and ethereum as signs of growing optimism among traders.
CME Bitcoin Futures Open Interest Overtakes Binance
Bitcoin futures open interest on the CME has overtaken Binance for the first time, indicating that institutions are getting increasingly serious about the space. There is a flurry of activity across trading venues as participants continue to bet on SEC approval for spot bitcoin ETFs.
Spot ETF Approval Expected to Be Delayed Until January
QCP expects the approval for a spot bitcoin ETF to be delayed until Jan. 2024, but anticipates a new narrative surrounding a spot ether ETF which should fuel animal spirits once again with crypto prices steadily grinding higher towards the end of the year. However, QCP warns that caution is still warranted as they are at crucial resistance levels.
Hot Take: Market Outlook Following BlackRock’s Registration
The surge in ethereum’s price following BlackRock’s registration of an Ethereum Trust showcases growing optimism among traders and investors. The shift in sentiment indicators and increased trading volume indicate renewed confidence in the cryptocurrency market. While there are concerns about crucial resistance levels and potential delays in ETF approvals, overall market sentiment remains positive regarding future price movements.
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