According to U.Today, cryptocurrency analyst Miles Deutscher has stated that the recent drop in Ethereum's price is 'not surprising at all' and may present an opportunity for investors. The flagship altcoin experienced a significant decline, plunging by as much as 8% following the launch of much-anticipated exchange-traded funds (ETFs). This unexpected drop has caught many market participants off guard.
The decline in Ethereum's price coincides with substantial outflows from Ethereum ETFs and a recent stock market crash. Deutscher noted that Bitcoin also faced a severe price correction after the launch of Bitcoin ETFs in January, with its price dropping by 20%. However, Bitcoin later rallied by 91% within 51 days, reaching a record peak of $73,737 on March 14. Despite the initial drop, Bitcoin ETFs recorded approximately $200 million in inflows on their second day of trading, contrasting with the net outflows seen in Ethereum ETFs.
The outflows have negatively impacted the ETH/BTC pair, putting additional pressure on Ethereum. The cryptocurrency may face further challenges in recovering if the stock market experiences a more severe correction. Cryptocurrency critic Peter Schiff has recently predicted that U.S. equities are on the brink of a major crash, potentially leading to a recession. Despite these concerns, most analysts believe that Ether ETFs will eventually record solid outflows, potentially reaching up to $6 billion in the first year of trading.
Overall, the price of Ethereum has increased by more than 70% on a year-over-year basis, indicating a strong performance despite recent setbacks.
