Bitcoin (BTC) and Ethereum (ETH) fell 3.5% on May 24 as long-awaited institutional milestones failed to energize the markets.
Bitcoin, Ether Disappoint Bulls in ETF Confirmation.
According to data from Cointelegraph Markets Pro and TradingView, BTC price remains near $67,000, while ETH price is at $3,670.
Both gave a muted response to the news that U.S. regulators had approved the launch of a spot Ethereum exchange-traded fund (ETF).
Despite a significant achievement for the cryptocurrency industry and a sharp policy shift by the Securities and Exchange Commission (SEC), ETFs are not yet ready for trading. Additional preparations, which analysts have suggested could take several weeks, have pushed back the launch date.
Discussing the latest event, Bloomberg Intelligence’s dedicated ETF analysts James Seyffart and Eric Balchunas entertained the idea of a mid-June launch.
Therefore, BTC/USD and ETH/USD avoided impulsive rises and even stayed outside local highs until the daily close.
Of greater interest to market participants on the day were the dynamics between the two largest cryptocurrencies.
Popular trader Daan Crypto Trades sees the potential for Bitcoin’s share of the overall cryptocurrency market capitalization to be significantly challenged once the Ethereum ETF is launched.
“The recent $ETH rally has seen #Bitcoin Dominance fall again,” he wrote in part in a post on X (formerly Twitter).
“This has been an upward trend for about 1.5 years and if anything could reverse this trend, ETH would be leading the way thanks to the ETF approval. “52% and 48% are key levels.”
Risks to the uptrend were pointed out by other traders who thought it could be the prelude to a full-blown “altseason”.
Bitcoin dominance hit 57% in mid-April, just before the block subsidy was halved, the highest level in more than two years.
BTC price reaction of $66,000 “key”
Investigating how low the BTC price could go before buyers intervene, prominent trader Skew cited an area of interest around $66,000.
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He explained in an analysis published on May 23 that this is home to a bid liquidity patch from Binance, the largest global exchange.
“With initial spot demand in the $66K to $65K range, the response is also important to gauge seller uptake. Spot supply remains at current highs of $72K to $76K,” he confirmed.
Skew added that this week’s price action was “driven by the spot exchange.” This highlighted both Binance and Coinbase, the largest trading platform in the US.
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