Bitcoin (BTC) and Ether (ETH) experienced a 3.5% decline on May 24, disappointing investors after an anticipated institutional breakthrough failed to stimulate the markets.
According to data from Cointelegraph Markets Pro and TradingView, BTC was trading near $67,000, while ETH was priced at $3,670.
The announcement that regulators in the United States had approved the launch of spot Ether exchange-traded funds (ETFs) did not elicit a significant response from either cryptocurrency.
Although the approval of ETFs is a noteworthy accomplishment for the crypto industry and represents a significant shift in policy for the Securities and Exchange Commission (SEC), the ETFs are not yet ready to be traded. Further preparations, which experts estimate could take several weeks, have delayed the expected launch date.
James Seyffart and Eric Balchunas, dedicated ETF analysts at Bloomberg Intelligence, speculated that the ETFs may receive the go-ahead in mid-June.
As a result, BTC/USD and ETH/USD did not experience a substantial upward movement and even retreated from their local highs by the end of the day.
The market dynamics between the two largest cryptocurrencies were of particular interest to traders on that day. Daan Crypto Trades, a popular trader, suggested that Bitcoin’s dominance in the overall crypto market cap could be significantly challenged once the Ethereum ETFs are launched.
Other traders also noted the potential risk to the upward trend, which they believed could be a precursor to a full-fledged “altseason.” Bitcoin dominance reached 57% in mid-April, just before its block subsidy halving, marking the highest level in over two years.
Examining how low BTC price action could go before buyers would step in, Skew, a well-known trader, identified a zone of interest around $66,000. This area, he explained, had significant bid liquidity on the largest global exchange, Binance.
Skew emphasized that the recent price surge was primarily driven by spot exchanges, particularly Binance and Coinbase, the largest trading platform in the United States.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.