Trading in Bitcoin (BTC) and Ethereum (ETH) fell 3.5% on May 24 as a long-awaited institutional push failed to boost markets.
Bitcoin and Ether disappoint bulls after ETF confirmation
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin price action remaining near $67,000, with ETH price at $3,670.
Both reacted mutedly to the news that US regulators have approved the launch of cash exchange-traded funds (ETFs).
This is a major achievement for the cryptocurrency industry and a step change in SEC policy. However, the ETFs were not yet ready for trading. Additional preparations, which analysts say could take several weeks, have pushed back the potential launch date.
Discussing recent events, James Seyphart and Eric Balchunas, ETF analysts at Bloomberg Intelligence, floated the idea of giving the green light in mid-June.
Therefore, BTC/USD and ETH/USD avoided an impulsive rise and even surpassed local highs at the daily close.
The dynamics between the two largest cryptocurrencies were even more interesting for market participants that day.
Popular trader Daan Crypto Trades saw that Bitcoin’s share of the overall cryptocurrency market cap could be significantly challenged once Ethereum ETFs launch.
“With the recent rise in ETH, we have seen the dominance of #Bitcoin decline,” he wrote in part of an article on X (formerly Twitter).
“This has been on an upward trend for about a year and a half, and if anything can reverse this trend, ETH will be a leader thanks to the ETF approval. 52% and 48% are the two main levels.
Other traders also highlighted the upside risk in what they saw as the prelude to a true “alternate season.”
Bitcoin’s dominance reached 57% in mid-April, before the block’s support was cut in half – its highest level in over two years.
The “key” BTC price reaction to $66,000
Looking at how far Bitcoin’s price action would decline before buyers intervene, popular trader Skew noted an area of interest around $66,000.
Related: Traders Say Bitcoin Price Correction Is a “False Exit” Ahead of Next Phase
This is where close points of auction liquidity are found on the world’s largest exchange, Binance, he explained in the analysis published on May 23.
“With initial spot demand estimated at $66,000 to $65,000, reaction is also key to gauging seller adoption, spot supply remains around the current high of $72,000 to $76,000,” a -he emphasized.
Scio added that this week’s price rise was “driven by spot trading,” pointing to both Binance and the largest US trading platform Coinbase.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
