Ethereum Spot ETF Entertains Crypto Markets Amid Interest Rate Uncertainty
NewYork – The renewed sentiment from the arrival of the Ethereum Spot ETF has overshadowed concerns about rising high interest rates. Investors remain optimistic in the crypto market, even though market conditions are still shrouded in uncertainty.
Triv Chief Executive Officer (CEO), Gabriel Rey, believes that the Fed’s interest rates may no longer be the main focus for the crypto market at this time. This is because the market has predicted long ago that there would be a potential interest cut in mid-2024.
The market is seen as paying more attention to the sentiment of the Ethereum Spot ETF approval which has the potential to attract more investment funds into the crypto asset industry. The approval of this Ethereum ETF is expected to follow in the positive footsteps of Bitcoin ETFs that appeared in early 2024.
“I am sure that if it is approved there will be an inflow to Ethereum and to layer 2 tokens, and bitcoin will definitely also get a splash. “Sentiment in crypto is very bullish, so there is no need to be afraid in the near future,” said Gabriel to Kontan.co.id, Wednesday (22/5).
According to Gabriel, the Ethereum ETF will most likely be approved by the United States (US) Securities and Exchange Commission (SEC). This is because the regulator provides a revision opportunity for Ethereum Spot ETF applicants, which means it reflects the product’s ultimate goal of being approved.
The US Securities and Exchange Commission (SEC) itself will make a decision regarding the approval of the Ethereum Spot ETF on Thursday (23/5) or Friday (24/5) local time.
Therefore, Gabriel remains optimistic that the price of Bitcoin will be able to reach US$100 thousand by the end of this year or perhaps reach it in 2025. Apart from ETF sentiment and interest rates, Bitcoin is expected to continue to rise due to increasingly expensive production costs following the Halving last April. .
Crypto Analyst Reku, Fahmi Almuttaqin added that the release of economic data related to the unemployment rate and the US Purchasing Managers’ Index (PMI) on Thursday this week will be a highly anticipated event.
Additionally, Nvidia’s earnings data release may also play a role in shaping market sentiment.
“So, if the Ethereum Spot ETF is approved and other data such as the United States PMI, Nvidia revenue shows positive numbers, then the potential for a crypto asset rally is open,” said Fahmi in a press release, Tuesday (21/5).
So, in this condition, Fahmi suggests that investors can optimize momentum by focusing on potential assets that are related to these developing catalysts.
For more conservative investors, including beginner investors, the DCA or dollar cost averaging strategy is still quite ideal to implement.
This is because the market situation could be more challenging because it is quite dependent on the development of several data that cannot be fully predicted, such as the SEC’s decision regarding the Ethereum spot ETF.