Wall Street is actively investing in the cryptocurrency market, leading to significant changes while also creating new risks. Amid the surge in investments in Ethereum, warnings about potential overheating are emerging.
Rising Ethereum Dominance and Its Consequences
Ethereum continues to gain popularity amid increasing institutional investments. However, the rapid growth of inflows may lead to temporary inflationary peaks. "Ethereum is known as the 'Wall Street token,' and it is not surprising that its role in providing asset stability is becoming more pronounced," experts note.
ETF-related Risks and Market Structure
The impact of ETFs, which demonstrated massive capital inflows, may prove to be temporary. Analysts emphasize that reliance on passive funds can distort price discovery mechanisms. If sentiment shifts, assets could sharply decline in value.
Institutional Momentum Against Macro Risks
Data on wallet inflows indicates that active positions in Ethereum and Bitcoin largely depend on positive news rather than real fundamentals. Historically, this has preceded corrections when macroeconomic nerves assert themselves. Experts warn of potential abrupt reversals in case of changes in the political climate.
The increase in Wall Street's investment in cryptocurrencies clearly demonstrates growing interest but also raises questions about short-term volatility risks. Ethereum and ETFs attract attention, but it is crucial to consider structural risks and macroeconomic fluctuations in the market.
