Odaily Planet Daily News Bitfinex Alpha's latest report said that the market remained resilient last week, and Bitcoin remained above the key $62,000, driven by the unexpected approval of the Ethereum spot ETF. Earlier last week, both BTC and ETH soared in anticipation of the upcoming announcement, but prices fell after the news was confirmed. While it is certainly positive for the industry as a whole that further regulated tools are now available to gain exposure to crypto assets, the U.S. SEC has made it clear that in the case of ETH, no ETF seeking to distribute ETH staking rewards to investors will be approved. In this case, more investors may be attracted to invest directly in ETH itself, thereby freely investing in assets and earning additional returns. This suggests that so far, people's enthusiasm for Ethereum ETFs may not be as high as Bitcoin ETFs. In fact, as of May 24, Bitcoin ETFs set a record for 10 consecutive days of inflows, with BlackRock's IBIT leading the way with $16.35 billion. In addition, an obvious indicator is that last week's surge in Ethereum prices was driven by increased activity in the perpetual futures market. The $4,000 resistance level remains a key psychological barrier, and while short-term volatility and consolidation are expected, the report believes that if this resistance level is broken, ETH may see a strong uptrend. The BTC and ETH implied volatility indexes provide a good illustration of the state of the BTC and ETH markets. The pattern we are seeing now is that intense speculation and significant market volatility accumulate around perceived risk events such as the Bitcoin halving, the last FOMC meeting, and the approval of the Ethereum ETF, but then prices stabilize almost as quickly, with implied volatility and volatility risk premiums decreasing once these events are over. In the broader economic arena, two key Fed officials last week provided important insights into how they view current economic conditions, reaffirming their strong commitment to reducing inflation to their 2% target. While a resilient labor market has boosted overall economic activity, persistent inflation and financial stability remain key areas of focus for policymakers.
