Bitcoin ETFs Arrive in the US, But Bitcoin Dips
Last week marked a significant moment in the crypto world with the launch of Bitcoin ETFs in the US. However, despite this milestone, Bitcoin experienced a 6% drop on Saturday and ended the week just above $43,000. Some analysts predicted this “sell-the-news” scenario where investors cashed out their profits following the anticipation of the ETF approval. Others believe that there is a rotation happening into Ethereum, which saw a 15% surge and reached new highs not seen since May 2022.
Ethereum ETF Speculation Drives Crypto Narratives
There is speculation that Ethereum could receive approval for an ETF from the SEC, following in Bitcoin’s footsteps. This narrative shift is supported by Alex Saunders, a Citi analyst, who noted that Ethereum has outperformed Bitcoin recently. This surge in Ethereum’s price is believed to be driven by the expectation of an ETF approval for the second-largest cryptocurrency.
“In our view, the crypto market has already moved to the next narrative, with ETH rallying more than bitcoin, likely on the expectation that crypto’s second largest token could also see an ETF approval,” Saunders said.
The launch of ETFs has long-term implications for Bitcoin’s trajectory and institutional adoption. While widespread inclusion is still far off, analysts at Citi anticipate that Bitcoin will gain extra prominence in diversified portfolios.
Crypto Equities Struggle as Bitcoin Slides
While Bitcoin took a breather after its historic week, crypto-related equities and miners faced challenges. Coinbase and MicroStrategy, heavily invested in Bitcoin, saw declines of 6% and 8% respectively. Miners such as CleanSpark and Iris Energy also experienced double-digit drops after suffering losses earlier in the week. This highlights the dynamic nature of the crypto ecosystem.
Hot Take: The Next Crypto Narrative
As Bitcoin’s ETF debut settles, Ethereum shines as a challenger with its own ETF hopes. The evolving stories and narratives in the crypto market are becoming more important than chasing short-term profits. Bitcoin’s recent dip may just be a prelude to a promising future. The crypto saga is far from over.
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