Ether is down 7.9% over the last 24 hours, while the overall cryptocurrency market is down 3.45% as investors continue to consider the impact of recent Mt. Gox transactions and macro developments.
According to The Block’s pricing page, Ethereum was trading at around $3,166 at the time of writing, down 7.9% over the last 24 hours. Bitcoin Bitcoin
-3.46%
At the time of writing, it was down 2.52%, trading at $64,200.
“The highlighted pullback… is not only unsurprising, it was expected,” Justin d’Anethan, head of APAC business development at crypto market maker Keyrock, told The Block. “Market memories are short, but while spot bitcoin ETFs have pushed prices higher, crypto markets have been down initially.”
“A lot of speculators are clearing trades,” d’Anethan added. “It’s so common. They buy the rumor and sell the news. 
Ethereum
-8.40%
The spot ETF application has been accelerated with approval, and now with actual trading underway, it’s led to a healthy ramp-up where people are essentially trying to get ahead of the event. Once the narrative has fully developed, it’s time to take profits and move on to the next trade.”
Min Jeong, an analyst at Presto Research, said the price action appeared to be a typical “news sell” event common in crypto markets. “The selloff also coincided with news that Bitstamp would acquire Mt. Gox assets and distribute them to creditors. Furthermore, the S&P 500 and Nasdaq both fell more than 3.5%, marking their worst day since 2022, which may have weighed on the crypto market due to disappointing earnings from tech companies,” Jeong added.
The U.S. stock market has been on an upward trend for several weeks. low Wednesday. The Nasdaq Composite fell 3.6%, its worst day since October 2022, while the S&P 500 fell 2.3%, its worst day since December 2022.
Bitstamp said on Wednesday: Started the process Returning Digital Assets to Mt. Gox Creditors Because we received Bitcoin, Bitcoin Cash, and Ethereum from the Mt. Gox Trustees, we plan to distribute the crypto assets to Bitstamp customers starting Thursday, July 25th.
Nick Ruck, head of growth at BitU Protocol, said traders may think the market is overheated as stocks and crypto prices fall. “These sharp price volatility may cause many traders to take some profits until things stabilize,” Ruck added.
Lucy Hu, senior analyst at Metalpha, said, “Despite the ETH price decline, we expect the decline to be temporary as market sentiment improves and the price of ETH will rise in the medium to long term.”
“There has been some short-term volatility since the launch of the ETH spot ETF, which is similar to the pattern observed following the launch of the Bitcoin ETF and the recent sell-off in a broad range of technology assets,” said Vivian Wong, partner at HashKey Capital. “This early volatility suggests that the market is in a correction phase, attempting to stabilize after the surprising price reaction to the announcement of the ETH ETF launch in May.”
Update: Added analyst comments
Disclaimer: The Block is an independent media outlet providing news, research and data. As of November 2023, Foresight Ventures is the largest investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information on the cryptocurrency industry. Below are the current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.