Buyers held Bitcoin price level, what will happen to cryptocurrency this week
The rate of Ethereum, the second most capitalized cryptocurrency, rose by 4% over the past day. This is the maximum price of Ethereum since March. On May 24, the U.S. approved the launch of exchange-traded funds for the Ethereum cryptocurrency. The U.S. Securities and Exchange Commission (SEC) for a long time postponed consideration of applications for the launch of such funds. But then it abruptly changed its rhetoric. This led to a rapid rise in the cryptocurrency's exchange rate by more than 25% in a week.
Exchange traded funds (exchange traded funds, ETFs) allow you to trade the underlying asset (i.e. cryptocurrency) in the form of shares. And that involve actually buying cryptocurrency from the market to back the shares of such a fund. The launch of bitcoin ETFs in the US earlier this year was one of the catalysts for the price of the first cryptocurrency to rise in 2024.
The growth of the crypto market is also constrained by other factors, among which the US monetary policy and the US Federal Reserve's position on the key rate remain the main ones. Last week, the minutes of the regulator's May meeting on the key rate were published.
Market participants wanted to see in them signals about the readiness of the US FRS to move to the long-awaited reduction of the key rate. But instead of that, the regulator's restrained position is traced there. According to the minutes, some representatives of the Fed adhere to the so-called hawkish monetary policy and demonstrate readiness not to lower. On the contrary, to raise the key rate, if it is not possible to reduce inflation rates in the near future. At the same time, market participants were more optimistic before the publication of the minutes, as the inflation data for the week ended May 19 showed a decline in the rate of growth of consumer prices.
The coming week is not full of significant economic events that can affect the course of trading in the crypto market. May 27 is a day off on the U.S. markets. And the main indicator, the publication of which investors will be waiting for, will be the personal consumption expenditure (PCE) index. And which serves as another factor in changing the rate of inflation growth and is taken into account by the U.S. Federal Reserve System when making decisions on monetary policy.
Due to the lack of significant macroeconomic news, crypto market participants this week will keep the focus on industry news. Thus, attention will be focused on the development of the situation around spot "ethereum" ETFs and discussion of their possible launch dates. $BTC