Recently, Ethereum's ETF application has finally been settled amid the public's attention, and the SEC has officially approved the applications of eight Ethereum ETFs. However, this epic positive news did not immediately boost the price of Ethereum, but instead the market has fluctuated to a certain extent. What exactly caused this phenomenon? The following is an in-depth analysis of the current Ethereum market dynamics.
1. Profit-taking and short-term operations:
When the price of Ethereum approached $2,800, $2,900, and $3,000, a large number of investors chose to buy at the bottom. They were looking forward to the release of good news and the inflow of funds from institutional ETFs. However, after the good news came true, these short-term investors began to sell their stocks, resulting in a certain amount of selling pressure in the market.
2. Grayscale Ethereum Fund’s capital flow:
Grayscale Ethereum Fund ETHE suffered an outflow of $484 million on its first day, of which only a small amount of funds ($15 million) flowed into the Grayscale Ethereum Mini Fund with lower management fees. This phenomenon is similar to the situation when the Bitcoin spot ETF was just passed. Due to profit-taking and the need to switch to lower-fee funds, the Grayscale Fund experienced a period of net outflow selling pressure.
3. Layout and operation of hedging institutions:
In this wave of market, hedging institutions also actively deployed ETH's spot and futures markets. Their precise layout enabled the institutions to win rich profits in this wave of market.
4. Negative market factors and economic conditions:
Despite the good news, negative factors in the market still exist. The global economy has yet to be activated, and the German government has just sold all its BTC. Now the BTC in Mentougou is coming back to repay the loan, which has brought some selling pressure to the market.
Looking back at the development of Ethereum, it has been 10 years since the ICO was launched on July 22, 2014. At that time, 1 BTC could be exchanged for 2,000 ETH, but now it can only be exchanged for less than 20 ETH. Today, Ethereum has become the second largest cryptocurrency in the world, second only to Bitcoin, with a market value of 417.597 billion US dollars. It is also the largest smart contract platform.
The official listing of Ethereum ETF on the US stock market marks another milestone for cryptocurrencies. Although the Ethereum market has experienced some fluctuations recently, in the long run, Ethereum still has great development potential. Once the current bubble melts away, Ethereum is expected to show its strong market appeal again. For long-term investors, the target of $4,800 is still worth looking forward to!
#比特币大会 #山寨季何时到来？ #美国以太坊现货ETF开始交易
