As a seasoned crypto investor with a decade of experience in the market, I’m not at all surprised by the recent Ethereum price drop. In fact, I remember going through a similar experience back in January when Bitcoin ETFs were launched and witnessed a significant correction. The stock market pressure also played a role during that time, but what was most concerning was the sudden outflows from Bitcoin ETFs, which created a ripple effect throughout the crypto market.
As a cryptocurrency investor, I’ve noticed that Ethereum‘s latest price decline isn’t unexpected to me. In fact, analyst Miles Deutscher shares my viewpoint. This pullback could potentially present a valuable buying opportunity for those with a long-term investment strategy.
The unexpected plunge in Ethereum’s price occurred only a day following the highly anticipated release of exchange-traded funds, taking many investors by surprise.
As reported by U.Today, the flagship altcoin plunged by as much as 8% this Thursday.
Besides the notable withdrawals made through Ethereum Exchange-Traded Funds (ETFs), Ethereum, the second largest cryptocurrency, experienced additional downward pressure as a result of the recent stock market decline.
According to Deutscher’s analysis, the price of Bitcoin saw a significant drop after the introduction of Bitcoin ETFs in January. The cryptocurrency declined by approximately 20% following their debut. However, Bitcoin bounced back strongly, surging 91% within just 51 days and reaching its all-time high of $73,737 on March 14.
Noting this, it’s important to mention that Bitcoin ETFs experienced approximately $200 million in investments on their second day of operation, marking a significant difference compared to the net losses reported for Ethereum ETFs.
The outflows have taken a toll on the ETH/BTC pair, which has come under renewed pressure.
Additionally, Ethereum could face challenges in bouncing back if there is a significant stock market downturn as forecasted by critic Peter Schiff. According to U.Today, a potential crash in US equities might trigger a recession.
Many analysts are of the opinion that Ether Exchange-Traded Funds (ETFs) may experience substantial redemptions amounting to approximately $6 billion in their inaugural year.
The price of Ethereum is up more than 70% on a year-over-year basis.
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2024-07-25 21:46