The Crypto Market is on Fire, This is the Cause

NewYork – The crypto market experienced a decline today, Friday (31/5/2024, after Ethereum exchange-traded funds (ETFs) were estimated to have not responded well enough compared to bitcoin ETFs.
Referring to CoinMarketCap on Friday (31/5/2024) at 05:36 WIB, the majority of the crypto market fell. Bitcoin rose 0.93% to US$68,292.13 and was in the positive zone of 0.98% on a weekly basis.

Ethereum is in the red zone 0.95% as well in the last 24 hours and in the week weakened 1.53%

Solana experienced a daily depreciation of 1.55% and a weekly drop of 5.85%.

Likewise, Toncoin was in negative territory by 1.11% in the last 24 hours and in the last seven days slipped 3.27%.

Crypto Performance (5/31/2024)

CoinDesk Market Index (CMI), which is an index to measure the market capitalization-weighted performance of the digital asset market, rose 0.14% to 2,757.29. Open interest depreciated 2.36% to US$69.07 billion.

Meanwhile, the fear & greed index reported by coinmarketcap.com shows the number 61, which shows that the market is in a neutral phase with the current economic and crypto industry conditions.

Analysts at JPMorgan predict that demand for Ether (ETH) spot ETFs will be much lower compared to Bitcoin ETFs.

A research report from JPMorgan estimates net inflows of up to US$3 billion for Ether ETFs by 2024. If staking is allowed, this figure could increase to US$6 billion.

JPMorgan revealed that bitcoin has the advantage that it has met the overall demand for crypto asset ETFs.

The launch of a Bitcoin spot ETF in January generated large inflows, a trend that is not expected to be repeated for the Ether ETF.

Analysts noted that the recent Bitcoin halving event also increased demand, a factor that was not the case for Ether.

Ether’s lower liquidity and smaller market capitalization make its ETFs less attractive to institutional investors compared to Bitcoin.

Additionally, the lack of staking on Ether ETFs reduces its appeal to platforms that offer staking yields.

This sentiment puts pressure on the price of ethereum, while the price of bitcoin actually strengthens.

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