Author: Mary Liu, BitpushNews
Crypto markets entered consolidation mode on Wednesday following the launch of a U.S. spot Ethereum ETF on Tuesday.
Traders are now focusing on U.S. second-quarter GDP data on Thursday and June PCE inflation data on Friday, hoping that these positive news will prompt the Federal Reserve to cut interest rates in September. The CME Group's FedWatch tool currently shows a 100% chance of a September rate cut.
According to Bitpush data, Bitcoin attempted to break through the $67,000 resistance level in the early trading session, but encountered short resistance and fell back to the $66,000 support level. As of press time, Bitcoin is trading at $65,416, down 0.87% in the past 24 hours.
Altcoin markets saw mixed performance on Wednesday, with the vast majority of the top 200 tokens by market cap seeing losses.
Among the rising tokens, SATS (1000SATS) had the largest gain, up 16.7%, followed by Jito (JTO) up 12.4%, and Flow (FLOW) up 11.6%. Mog Coin (MOG) led the decline, falling 11.4%, while Convex Finance (CVX) fell 10.5%, and ENS fell 8.5%.
The current overall market value of cryptocurrencies is $2.39 trillion, with Bitcoin accounting for 54.4% of the market.
In the U.S. stock market, the financial reports of technology giants such as Alphabet and Tesla were mediocre, causing investors to worry that the "Big Seven" that pushed up the U.S. stock market may be losing momentum. The U.S. stock market suffered its worst day in months. As of the close of the day, the S&P 500, Dow Jones and Nasdaq all closed down, down 2.31%, 1.25% and 3.64% respectively.
Spot Ethereum ETF listing news has been digested by the market
U.S. spot Ethereum ETFs had a cumulative trading volume of about $951 million on Wednesday, according to data compiled by The Block Pro Research. On their first day of trading on Tuesday, the funds had a trading volume of $1.054 billion.
Pat Doyle, a blockchain researcher at Amberdata, said: "Compared to the BTC ETF, the performance of the Ethereum ETF on the first day was within the expected range. We set our estimates by analyzing the market capitalization of ETH and BTC. The market capitalization of ETH is currently about 30% of BTC. Conservatively estimated, ETH trading volume is about 20-30% of BTC trading volume."
Despite the successful debut of spot ETFs on Tuesday, ETH has performed poorly, falling to $3,300 at one point, down nearly 4% in the past 24 hours. ETH prices also hit their lowest level in two months compared to Bitcoin. This shows that the launch of ETFs has been largely priced in, especially since the key ETF documents were approved by the U.S. Securities and Exchange Commission in May.
$66,000 is a key support level
Bitcoin rebounded to $66,500 after falling below $65,500 on Tuesday, but pressure from a potential sell-off at Mt. Gox prevented a sustained rise. Bitstamp said it would begin disbursing funds to creditors starting Thursday.
“It is widely believed that creditors will sell Bitcoin as soon as they receive it, which puts downward pressure on the price of Bitcoin. The market is eagerly waiting for a bullish trigger to break out of the current trading range. Donald Trump’s upcoming speech at the Nashville conference on July 25 could be a catalyst, especially if he announces plans to use Bitcoin as a national reserve.”
According to market analyst Emperor, $66,000 has become a critical support level following the recent pullback to $63,500.
Emperor analysts said: "Initially people thought that the sell-off would start from 63,500, but that position was the local bottom of the sell-off. The 66,000 level was broken many times and then retested as a support level. BTC will spend a lot of time here and accumulate. $67,000 was also broken at one point, so it can be determined that it is no longer a strong resistance level, but we need some positive news to break it and establish it as a support level. The best option at the moment is to be ready to buy at the right dip level and continue to accumulate until September."
Elija Boom, a market analyst at X Platform, said that Bitcoin traders do not have to wait until September as he sees the upward trend resuming within a week once the distribution of Mt. Gox Bitcoins to creditors is completed.
