- Launch of Spot ETFs and Ethereum Price Decline
- End of the Bull Market?
- Overall State of the Cryptocurrency Market
Spot Ethereum ETFs, which began trading in late July, failed to meet expectations in Ethereum price. During this time, ETH price fell by 25%, causing pessimism among investors.
Launch of Spot ETFs and Ethereum Price Decline
The ETH price has fallen by 25% since the launch of spot Ethereum ETFs on July 23, while the ETFs experienced a net outflow of $420.5 million. Nansen chief research analyst Aurelie Barthere believes the decline in Ethereum is due to lack of investor interest and risk appetite, not outflows in spot ETH ETFs.
End of the Bull Market?
Evaluating the current state of the cryptocurrency market, the analyst stated that the stagnation in BTC, ETH and, more broadly, cryptocurrency prices could be a temporary correction or a sign of the end of the current bull market. Barthere said the uncertainty over whether this recession is a temporary correction or the end of a bull market will largely depend on the monetary policy decisions the Fed makes in the coming months.
Overall State of the Cryptocurrency Market
Nansen analyst Aurelie Barthere, who also evaluated the recent sharp declines in Bitcoin, Ethereum and altcoins, said that the selling wave was not specific to cryptocurrencies, but occurred under the influence of the broader stock sector.
The decline in Ethereum price since the launch of spot ETFs continues to cause pessimism among investors. Nansen’s chief analyst notes that this is due to a lack of risk appetite rather than the ETF launch. The future of the cryptocurrency market will largely depend on upcoming monetary policy decisions.
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