People walk past neon signs advertising Bitcoin and Ethereum cryptocurrency exchanges in Warsaw, Poland, May 19, 2024.
Yap Arians | Noor Photos | Getty Images
Bitcoin Ethereum ETFs led cryptocurrency markets lower on Tuesday, the first day of trading, as Mt. Gox transferred more bitcoin to creditors and investors took profits after the cryptocurrency posted its best week since March. .
Bitcoin prices recently fell 3% to $65,891.50, according to Coin Metrics. ether, down less than 1% to $3,476.04. Investors and analysts attributed the move to profit-taking after last week’s gains of 22.85% and 12.75%, respectively.
In addition, Bitcoin network activity shows that Mt. Gox has moved approximately 5,000 Bitcoins out of the exchange, possibly as a Creditor repayment process This month begins. The exchange went bankrupt after a major hack 10 years ago and has until October to return more than 140,000 bitcoins to the victims of the incident.
The market is expected to absorb the negative impact due to long-term optimism over the success of the Ethereum ETF and the U.S. presidential election.
“We are consistent with the market consensus that here we adopt May be relatively slow Devin Ryan, an analyst at JMP Securities, said: “This number is not high compared to the adoption of Bitcoin ETFs. Part of the reason is that Bitcoin ETF adoption is still in the early stages—many of the largest pools of funds for the ETF have not even invested in it yet. Steering.
However, Nexo co-founder Antoni Trenchev said that in the meantime, Ethereum may experience volatility. He pointed out that when the Bitcoin ETF was launched in January, Bitcoin first soared, then plummeted 20%, and then hit new highs.
Ben Kurland, CEO of crypto research platform DYOR, said: “Just like the Bitcoin ETF, it will take some time for inflows into the ETH ETF to create a sufficient supply shock to significantly affect the market.”
Furthermore, he added that the president’s decision Joe Biden arrive drop out The presidential race has brought uncertainty to markets.
“Investors are awaiting more concrete developments from (the Vice President) Kamala Harrisher stance on cryptocurrencies, and the likelihood of her taking back any seats in the polls,” he said.
Trenchev echoed the sentiment.
“Bitcoin’s decline from recent highs reflects the sudden entry of Kamala Harris into the U.S. presidential race, adding uncertainty to a race that appears to be favoring Trump. Donald Trump and his New stance in support of cryptocurrencies,” He said.
