Markets
Assured Spot Ether ETF Approval Fails to Boost Crypto Market Collapse
Cryptocurrency markets remained under pressure during U.S. trading hours on Thursday, continuing a pullback that began a day earlier when the Fed signaled it planned to cut rates just once this year .
The price of ether {{ETH}} saw a mid-morning rebound after US Securities and Exchange Chairman Gary Gensler – in testimony at a Senate hearing – said he expected Spot ether ETFs will have received full approvals from its agency by the end of summer.
The news sent ether up 1%, but it proved to be a selling opportunity, with the price reversing more than 3% just an hour later. At press time, ether was changing hands at $3,440, down 5% in the last 24 hours. The largest CoinDesk 20 Index was down 4.9% over the same period.
Also down nearly 5% was the price of bitcoin {{BTC}}, which was trading near a one-week low of $66,300.
Markets began heading south Wednesday afternoon following the Federal Reserve’s decision. results of hawkish political meeting. The U.S. central bank kept its benchmark federal funds rate range between 5.25% and 5.50%, but surprised with its updated projections suggesting an expectation of just one 25 basis point rate cut in 2024. three movements of 25 basis points this year.
Thursday morning’s U.S. economic data, which suggested a continued slowdown in inflation and the economy, failed to improve the macroeconomic mood in the crypto space. The May producer price index (PPI) fell 0.2% against an expected rise of 0.1%. On an annual basis, the PPI was 2.2% higher than the forecast of 2.5%. There were also the first unemployment claims, which reached a nearly one-year high of 242,000, compared to an expected 225,000.
“$66,000 seems like a break-even point,” said well-followed analyst Skew. in an X postwho, along with others, is trying to decode a market that will not rise sustainably despite much recent bullish news: improving inflation data, Bitcoin-friendly presidential frontrunner Donald Trump, one-off approvals of ETH ETFs and other risky asset markets. (i.e. US stocks) reaching new all-time highs.