Co-founder of the venture capital firm Mechanism Capital, Andrew Kang, shared a post on the social media platform X, offering his insights on the market.
He mentioned that experts indicate the timeline for seeking approval to add exchange-traded funds (ETFs) to wealth management platforms has been shifted from the initially planned end of May to the fourth quarter.
Despite the shift in market momentum from upward to downward due to the absence of substantial ETF inflows, he maintains that Bitcoin will remain above the $50,000 mark. While some analysts interpret the weekly chart as suggesting a double top pattern, he stresses that the market structure has evolved from past cycles. This change is characterized by an increase in dollar-cost averaging (DCA) buyers, leading to higher support levels and equilibrium points for Bitcoin. Meanwhile, major momentum players such as 3AC, Alameda, and Celsius now have comparatively less leverage.
Additionally, he suggested that the price of ETH might remain stable until the ETFs are listed, with a projected upper limit of around $4,000 this year. However, if the fund flow performance is underwhelming or there is significant selling of ETHE, the price could decline to between $2,000 and $3,000. He also observed that the level of publicity and familiarity surrounding Ethereum is exceptionally high in the market, leading to elevated expectations for ETFs among investors compared to ordinary buyers.
He also observed that Solana performed exceptionally well during this cycle, but its performance was influenced by the demand for memecoin trading, which affected its price both positively and negatively. If meme coin trading were to decrease in the coming months, Solana’s price could potentially drop to $80 again.
I believe the timeline for this is delayed by 1-2 quarters. Some market views
Experts now suggesting that solicitation approval/ETFs added to wealth management platforms is slated for Q4 instead of late May as originally suggested
With a lack of acute ETF inflows, momentum… https://t.co/L7Pb9RizlL
— Andrew Kang (@Rewkang) June 19, 2024
Cryptocurrency Market Sees Mixed Trends Amid Volatility
At the time of writing, cryptocurrency prices continue to experience volatility. BTC and Ethereum ETH are consolidating near their previous day’s price levels, while Solana is experiencing a downward trend.
According to data from CoinMarketCap, BTC is currently trading at $65,525, showing a 0.04% increase over the past 24 hours, indicating a period of sideways movement around the $65,000 level. During this time, its lowest and highest prices were $64,693 and $65,617, respectively. Bitcoin’s market dominance is assessed at 54.08%, a decrease of 0.11% from the previous day.
ETH is currently trading at $3,582, reflecting a 0.76% increase over the past 24 hours. Its 24-hour low and high were recorded at $3,515 and $3,586, respectively.
Meanwhile, Solana is trading at $136, experiencing a decline of over 3.11% in the past 24 hours, pulling back from its recent high of $141. Its 24-hour low is recorded at $132.
The overall cryptocurrency market capitalization has increased by 0.24%, reaching $2.39 trillion. In contrast, the total cryptocurrency market volume over the past 24 hours has decreased by 34.66%, amounting to $57.42 billion.
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