Ethereum

Bitcoin

Impact

<p>The <a href="https://coinmarketcap.com/currencies/ethereum/" target="_blank">price of Ethereum (ETH)</a> has taken a nosedive, contrary to expectations of a bullish rally following the <a href="https://captainaltcoin.com/sec-approves-ethereum-etfs-analyst-highlights-what-this-means-for-eth-bitcoin-btc-and-other-cryptocurrencies/" target="_blank">approval of several Ethereum exchange-traded fund (ETF)</a> applications by the U.S. Securities and Exchange Commission (SEC). This unexpected price dump has left many investors puzzled and concerned about the implications for the broader cryptocurrency market.</p> 
<p>On May 23, the SEC approved rule 19b-4 forms for eight Ethereum ETF applications submitted by prominent firms such as BlackRock, Fidelity, Grayscale, ARK Invest, VanEck, Invesco Galaxy, and Franklin Templeton. This milestone decision was seen as a significant step forward for the cryptocurrency industry, as it effectively classified Ethereum as a commodity rather than a security.</p> 
<p>Despite the positive news, Ethereum’s price closed in the red yesterday, and the downward trend may continue today. This counterintuitive price action has raised eyebrows and sparked discussions among market analysts and industry experts. Kyle Chassé, <a href="https://x.com/kyle_chasse/status/1793911315280400442?t=bincNWEtT8xYwSQaGABLoA&amp;s=19" target="_blank" rel="nofollow">a popular cryptocurrency analyst</a>, offered valuable insights into the potential reasons behind the Ethereum price dump:</p> 
<p><strong>Delegated Authority and Political Underpinnings</strong></p> 
<p>According to Chassé, the SEC’s approval was granted under “delegated authority” by the Division of Trading and Markets, meaning a commissioner can challenge the decision within the next 10 days. This process suggests an attempt to avoid a formal vote due to potential political implications</p>  
<div class="wp-block-rehub-colortitlebox rh-colortitlebox" style="text-align:left;border-radius:5px;box-shadow:0 10px 10px #00000007;background-color:#fafafa;color:">
 <div class="rh-colortitle-inbox" style="background-color:var(--rehub-main-color);color:#fbfbfb;border-radius:5px 5px 0 0">
  <i class="rhicon rhi-bolt-regular rh-colortitlebox-icon" style="color:"></i>
  <div class="rh-colortitle-inbox-label">
   New Meme Coin to Watch Aiming to be Next $BONK, $WIF or $MEW
  </div>
 </div>
 <div class="rh-colortitlebox-text">
  <style scoped>.rh-toggler-open{height:auto !important}
.rh-toggler-open .rh-tgl-show, .rh-toggler-open .rh-tgl-grad{display:none !important}
.rh-toggler-open .rh-tgl-hide{display:block !important}
.rh-tgl-show, .rh-tgl-hide{cursor:pointer}
.rh-contenttoggler *{box-sizing: border-box !important}
.rh-toggler-wrapper{overflow: hidden;transition: all 0.5s ease; padding-bottom: 35px; margin-bottom:30px;box-sizing: content-box !important;position: relative;}
.rh-toggler-wrapper p:last-of-type {margin-bottom: 0;}</style> 
  <div class="wp-block-rehub-contenttoggler rh-contenttoggler" data-height="100px">
   <div class="rh-toggler-wrapper" style="height:100px"> 
    <p><strong><a href="https://mileimoneda.io/?utm_source=marketing&amp;utm_medium=inarticle&amp;utm_campaign=cap&amp;utm_id=s1" target="_blank" rel="nofollow">Milei Moneda</a></strong> is a new meme coin inspired by the political and economic views of Javier Milei, an Argentine president&nbsp;known for his libertarian and pro-Bitcoin stance. You have an opportunity with the <strong><a href="https://mileimoneda.io/?utm_source=marketing&amp;utm_medium=inarticle&amp;utm_campaign=cap&amp;utm_id=s1" target="_blank" rel="nofollow">ongoing low presale price</a></strong> to get in early!</p> 
    <p><em>Sponsored</em></p> <span class="rh-tgl-trigger" style="text-align:center;position:absolute;z-index:2;bottom:0;left:0;width:100%;color:"><span class="rh-tgl-show" style="display:block">Show more +</span><span class="rh-tgl-hide" style="display:none">Show less –</span></span><span class="rh-tgl-grad" style="background-image:linear-gradient(to bottom,rgba(255,255,255,0) 0,#ffffff 100%);display:block;position:absolute;height:100px;bottom:0;left:0;z-index:1;width:100%"></span>
   </div>
  </div> 
 </div>
</div> 
<p><strong>Strategic Trade-off and Timing Considerations</strong></p> 
<p>Chassé speculates that there may be a strategic trade-off at play, with the SEC pushing for pro-crypto measures in exchange for implementing Environmental, Social, and Governance (ESG) rules. The timing of these moves also suggests a desire to establish the ESG rules before July 1 to prevent potential challenges from a potential Trump re-election.</p> 
<p><strong>Similarities to the FIT Act and S-1 Approvals</strong></p> 
<p>Chassé draws parallels between the current situation and the recently passed FIT Act, which was viewed as “political progress” for the cryptocurrency industry. However, he believes it is unlikely that S-1 forms (registration statements for securities offerings) will be approved anytime soon, although developments are being closely watched.</p> 
<h2 class="wp-block-heading" id="impact-on-bitcoin-and-altcoins">Impact on Bitcoin and Altcoins</h2> 
<p>While the Ethereum price dump may seem concerning, industry experts suggest that the approval of Ethereum ETFs could have far-reaching positive implications for the broader cryptocurrency market. Based on a tweet by <a href="https://x.com/Mysteryofcrypt/status/1794016513785254375?t=6lnfGvbhEnNWNfBZ8y1g1Q&amp;s=19" target="_blank" rel="nofollow">Mystery of Crypto</a>, the approval will affect BTC and alts in the following ways: </p> 
<p><strong>Boosting Investor Confidence and Accessibility</strong></p> 
<p>The approval of Ethereum ETFs is seen as more impactful than a Bitcoin ETF because it confirms Ethereum’s status as a commodity, bolstering investor confidence and making the asset more accessible to institutional investors in the US market.</p> 
<p><strong><em>Read Also: <a href="https://captainaltcoin.com/fetch-ai-fet-price-analysis-expert-predicts-rally-for-the-ai-crypto-if-key-level-holds-heres-his-outlook/" target="_blank">Fetch.AI (FET) Price Analysis: Expert Predicts Rally for the AI Crypto if Key Level Holds – Here’s His Outlook</a></em></strong></p> 
<p><strong>Lifting Bans and Attracting Institutional Investment</strong></p> 
<p>Additionally, classifying Ethereum as a non-security could potentially lift bans on staking and open the door for significant institutional investment in the cryptocurrency. This increased legitimacy and accessibility might attract more institutional interest in the wider crypto market, benefiting Bitcoin and other altcoins.</p> 
<p><strong>Potential Price Targets and Market Performance</strong></p> 
<p>According to analysts, Ethereum’s price could reach at least $6,000 by the end of the year, representing a 60% increase from current levels. Strong performance is expected in the latter half of the year, with a positive impact on Bitcoin and other altcoins due to the increased legitimacy and institutional interest brought about by the Ethereum ETF approvals.</p> 
<p>Regulatory decisions like the approval of Ethereum ETFs will play a crucial role in shaping the industry’s future. While the short-term price action may seem perplexing, the long-term implications of this development could be far-reaching and transformative for the entire cryptocurrency ecosystem.</p> 
<p><em><strong>Join <a class="thirstylink" rel="nofollow" target="_blank" title="aethir" href="https://captainaltcoin.com/go/aethir/" data-shortcode="true">Aethir’s exclusive airdrop</a> and earn badges by participating in events or holding community tokens. Complete tasks and secure your spot before the snapshot date is revealed!</strong></em></p> 
<div class="bigofferblock margincenter mb30 pt20 pl20 pr20 " style=""> 
 <div class="col_wrap_two mb0"> 
  <div class="offerbox_big_wrap flowhidden"> 
   <div class="image position-relative text-center col_item mobileblockdisplay img-maxh-350 img-width-auto"> <a class="re_track_btn" href="https://captainaltcoin.com/go/ll_bottom/" target="_blank" rel="nofollow sponsored"> <img decoding="async" class="lazyload" data-skip-lazy="" data-src="https://captainaltcoin.com/wp-content/uploads/thumbs_dir/REBEL-SATOSHI-RECQ-MEME-COIN-qndahijqjwle5mml7gg8my30uqig0eo11vxmtat25a.png" width="500" alt="Check $RECQ Meme Coin" src="https://captainaltcoin.com/wp-content/themes/rehub-theme/images/default/blank.gif"> </a> 
   </div> 
   <div class="product-summary col_item mobileblockdisplay"> 
    <h3 class="product_title entry-title font150 lineheight25 mb30" id="a-class-re_track_btn-href-https-captainaltcoin-com-go-ll_bottom-target-_blank-rel-nofollow-sponsored-span-check-recq-meme-coin-span-a"> <a class="re_track_btn" href="https://captainaltcoin.com/go/ll_bottom/" target="_blank" rel="nofollow sponsored"> <span>Check $RECQ Meme Coin</span> </a> </h3> 
    <div class="rev_disclaimer font70 greencolor lineheight15 mb20">
     Sponsored: Invest Responsibly, Do Your Own Research.
    </div> 
    <div class="buttons_col mb25 rh_big_btn_inline"> 
     <div class="priced_block clearfix"> 
      <div> <a class="re_track_btn btn_offer_block" href="https://captainaltcoin.com/go/ll_bottom/" target="_blank" rel="nofollow sponsored"> Buy RECQ Today </a> 
      </div> 
     </div> 
    </div> 
    <div class="bigofferdesc">
     <i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>Serves as the base currency for all transactions within the Rebel Satoshi platform
     <br><i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>ICO stage, offering tokens at a discounted price
     <br><i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>Facilitates a smooth and efficient economy within the arcade, supporting both arcade and in-game transactions.
     <br><i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>Grants access to a diverse range of gaming experiences in the Rebel Satoshi Arcade,
     <br><i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>Contributes to a decentralized, community-driven RebelSatoshi platform that integrates gaming with elements of revolution, freedom, and unity, appealing to users who value such principles.
    </div> 
   </div> 
  </div> 
 </div> 
</div> 
<p>The post <a href="https://captainaltcoin.com/why-is-ethereum-price-dumping-following-eth-etf-approval-potential-impact-on-bitcoin-btc-and-altcoins/">Why Is Ethereum Price Dumping Following ETH ETF Approval? Potential Impact on Bitcoin (BTC) and Altcoins</a> appeared first on <a href="https://captainaltcoin.com">CaptainAltcoin</a>.</p>

Why Is Ethereum Price Dumping Following ETH ETF Approval? Potential Impact on Bitcoin (BTC) and Altcoins

Table of Contents

CaptainAltcoin

Other articles published on May 25, 2024

MoomBag Memecoin: How 15000% Raise Stacks Against Dogecoin and Fantom in Cryptocurrency Investment

Solana Surges Amid Litecoin Accumulation Frenzy; Raboo Presale Rapidly Approaching Next Stage

Crydit Introduces The New Era Of Crypto Payments

Top 5 Altcoins with Millionaire Potential: Experts’ Picks for This Cycle

London Court Jails Former Fast Food Worker for $5.6 Billion Bitcoin Laundering Scheme

BitGo $100M Lawsuit Against Galaxy Digital to Dismissal Reverse by Court

Join our free newsletter for daily crypto updates!