People walk past neon signs advertising Bitcoin and Ethereum cryptocurrency exchanges in Warsaw, Poland, May 19, 2024.
Yap Arians | Noor Photos | Getty Images
Bitcoin Ethereum ETFs led cryptocurrency markets lower on Tuesday, the first day of trading, as Mt. Gox transferred more bitcoin to creditors and investors took profits after the cryptocurrency posted its best week since March. .
Bitcoin prices recently fell 3% to $65,891.50, according to Coin Metrics. ether, down less than 1% to $3,476.04. Investors and analysts attributed the move to profit-taking after last week’s gains of 22.85% and 12.75%, respectively.
In addition, Bitcoin network activity shows that Mt. Gox has moved approximately 5,000 Bitcoins off exchanges, possibly as part of a creditor repayment process that begins this month. The exchange went bankrupt after a major hack 10 years ago and has until October to return more than 140,000 bitcoins to the victims of the incident.
The market is expected to absorb the negative impact due to long-term optimism over the success of the Ethereum ETF and the U.S. presidential election.
“We agree with the market consensus that adoption of Bitcoin ETFs is likely to be relatively slow and modest compared to Bitcoin ETFs,” said JMP Securities analyst Devin Ryan. “Part of this is because Bitcoin ETF adoption is still in its early stages — the Many of the largest pools of ETFs haven’t even started yet,” he added.
However, Nexo co-founder Antoni Trenchev said that in the meantime, Ethereum may experience volatility. He pointed to the launch of the Bitcoin ETF in January, when Bitcoin soared, then plunged 20% before hitting new highs.
Ben Kurland, CEO of crypto research platform DYOR, said: “Just like the Bitcoin ETF, it will take some time for inflows into the ETH ETF to create a sufficient supply shock to significantly affect the market.”
Additionally, President Joe Biden’s decision to drop out of the presidential race has created uncertainty for the market, he added.
“Investors are awaiting more concrete developments from (Vice President Kamala) Harris, her stance on cryptocurrencies and the likelihood of her regaining any ground in the polls,” he said.
Trenchev echoed the sentiment.
He said: “Bitcoin’s decline from recent highs reflects the sudden entry of Kamala Harris into the US presidential election, adding uncertainty to a race that appears to favor Donald Trump and his new pro-crypto stance. sex.
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