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Bitcoin Faces Potential Decline as Ether ETFs Deliver Disappointing Results

Oct 7, 2023 at 02:25 pm

Recent market data reveals a marginal decline of just under 1% in the broader cryptocurrency markets within the past 24 hours.

There's an emerging sentiment suggesting that Bitcoin (BTC) might be on the verge of a short-term reversal following its recent price upswings. Moreover, the lackluster performance of Ether (ETH) futures within the exchange-traded fund (ETF) sector is exerting downward pressure on major cryptocurrencies.

Alex Kuptsikevich, the senior market analyst at FxPro, highlights that "Bitcoin continues to exhibit a propensity for selling during phases of growth, rather than making a renewed attempt at the 200-day moving average." Kuptsikevich further emphasizes that while Bitcoin recently outperformed the stock market, it is presently retracing due to heightened buying activity in the stock indices.

Looking forward, the trader posits that, in the short term, Bitcoin might be more susceptible to a decline rather than an upswing. This apprehension is compounded by Ether's bearish performance, which has not fostered much confidence in leading tokens.

The prior week witnessed both Ether and Bitcoin achieving one-month highs, fueled by the introduction of six ETH ETFs in the U.S. There were strong anticipations of robust demand for these products. However, the actual performance paints a different picture. The cumulative trading volume across the various ETFs scarcely surpassed $2 million on Monday. This lackluster performance throughout the week prompted analysts to revise down their optimistic projections and redirect their focus back to Bitcoin investments.

This sentiment cast a pall on prices. Ether experienced a loss of almost all the gains it had made the previous week, while Bitcoin maintained relative stability above its support levels.

Over the last 24 hours, major cryptocurrencies exhibited limited fluctuations. This could be attributed to profit-taking earlier in the week and a general dearth of significant catalysts. Bitcoin saw a modest decline of 0.5%, Ether slipped by 1%, and XRP, along with BNB Chain’s BNB, displayed marginal changes.

Cardano’s ADA tokens stood out as the exception, showcasing a 2.2% increase in price. In other sectors, toncoin (TON) witnessed a substantial surge of 8.8%, despite the absence of an immediately discernible catalyst. Furthermore, Avalanche’s AVAX tokens sustained their upward momentum from earlier in the week with a 4% leap.

Read more: Cryptocurrency Investments Surge Amidst Government Shutdown Fears

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