- Ethereum’s Resurgence: A look at Ethereum’s surge in value and its impact on the broader cryptocurrency market.
- Trader Shift to Altcoins: We discuss the shift in trader focus to altcoins amid anticipation for Bitcoin ETFs.
The digital currency sector witnessed a sea change as Bitcoin subtly rose to $47,000 after securing approval for Exchange-Traded Funds (ETFs) directly linked to the token. However, the real winners in this cryptocurrency saga appear to be Ethereum (ETH) and various altcoins, which have gained attention and made surprising gains following the approval of the Bitcoin ETF.
ETF Nod After Ethereum’s Soaring Bitcoin
As news of the Bitcoin ETF approval resonated through the cryptocurrency world, Ethereum enthusiasts erupted in cheers. price Ethereum (ETH) surged past $2,600 in a strong reaction to broader market sentiment. Analysts are now betting on ETH to outperform Bitcoin in the first quarter of 2024.
The ripple effects of Ethereum’s positive momentum have extended beyond major digital assets. Within the Ethereum ecosystem, affiliated tokens saw significant gains, including Polygon with a notable 13% gain, Chainlink with an 11% gain, and Uniswap with an impressive 14% gain.
Also Read: XRP Starts Bullish Momentum Following Bitcoin ETF Approval
Traders’ focus shifts to Ethereum ETF expectations.
The speculative atmosphere surrounding the potential reality of a Bitcoin ETF has redirected traders’ attention to Ether, anticipating the next story revolving around the Ethereum ETF. Conor Ryder, Head of Research at Ethena Labs, observed that the perceived economics of Ether compared to other tokens have positioned traders strategically in anticipation of future developments in the Ethereum space.
As the U.S. Securities and Exchange Commission (SEC) prepares to begin on-site review of Ethereum ETF applications starting in May, industry giants such as BlackRock, Invesco, Ark, VanEck, and Grayscale are awaiting their turn for approval. Ryder highlighted the narrative change in an interview with CNBC:
“The important thing is to get ahead of the narrative. Bitcoin has rebounded against Ethereum over the past six months thanks to spot ETF speculation, and ETF approvals support this narrative. Meanwhile, ETH has struggled to find momentum and has underperformed most smaller layer 1s like Solana and Cardano.
In the last 24 hours, Ethereum has witnessed a surge exceeding 10%, which goes against the usual downward trend for Ethereum NFTs. In particular, Moonbirds suffered a decline of over 23% and recorded a historic drop of less than 1 ETH. Additionally, MAYC has declined by over 6% and approximately 290 MAYC are currently in the Blend liquidation auction.
Altcoins enter the fray
The euphoria is not limited to Ethereum. Other altcoins such as Cardano (ADA) have also joined the party. The price of ADA soared 12.48% and is currently trading at $0.58 with a market capitalization of $20.5 billion. Technical charts suggest that ADA could rise to $1 by the end of the year.
At the same time, Avalanche (AVAX) and Polkadot (DOT) prices rose 11.47% and 14.6%, respectively, solidifying broad support among alternative digital assets.