$ETH WHY THE CANDLES BECAME RED May 24 2024
The recent approval of spot Ether ETFs in the U.S. has activated a "sell-the-news" reaction among crypto traders. Meanwhile, decreasing odds of Fed rate cuts continue fueling the selling pressure.
WHAT HAPPENS NEXT?
This counterintuitive reaction happens because investors usually buy in anticipation of the news, causing the price to climb beforehand. Crypto analyst Zach Rynes suggests the market had already priced in the approval, with Ether rising with 20% this week and taking the crypto market up by 5%.
Furthermore, the actual launch of these ETFs is pending further regulatory steps, including the approval of S-1 filings, which explains the financials and risks of the offering firms. VanEck's amended S-1 filing is under SEC review, this entire process could take weeks to months. It is quite difficult to give an exact timeframe.
MY CONCLUSION: The market behaviour of today looks more like a pause, because investors still need to digest recent gains and concentrate on certain external economic factors, without forgetting the recent rates "sell-off"
A lot of time went into this, but don't forget to always do your own research.
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