Bitcoin Slumps on Interest Rate Fears, Ethereum Steals Spotlight

Published by

Mustafa Mulla

May 24, 2024

Bitcoin’s price dropped on Friday, moving away from recent highs due to worries about high U.S. interest rates. his decline overshadowed a significant development in the approval of exchange-traded funds (ETFs) directly tracking Ether in the United States.

Despite some gains earlier in the week, Bitcoin faced a 3.2% decline in the past 24 hours, settling at $67,415.9. Crypto expert Michaël van de Poppe foresees a further slide, suggesting figures around $61,000 to $63,000 in the near term.

Consolidation Phase: Bitcoin’s Current Status

Bitcoin, the leading cryptocurrency, finds itself in a consolidation phase, with its value hovering within a certain range. Analyst Michaël van de Poppe believes this phase could last a while, possibly pushing Bitcoin’s value to test levels between $61,000 to $63,000.

While this phase may not excite short-term traders looking for action, it offers an opportunity for long-term investors to build positions at favorable prices.

Ethereum Overshadowing Bitcoin

Van de Poppe’s analysis suggests a shift of funds from Bitcoin to Ethereum, contributing to Bitcoin’s prolonged stability. With the approval of all 8 spot Ethereum ETFs, investors are diversifying their crypto portfolios, favoring Ethereum and injecting significant capital.

This shift in investor preference has led to an interesting dynamic between Bitcoin and Ethereum, reshaping the broader market landscape.

Ethereum Price Analysis

Currently, Ethereum is trading at $3,702.11, marking a 5.42% decline in the last 24 hours. Despite this dip, ETH trading volume has surged by 68%, pushing its market cap to $445 billion.

Despite recent fluctuations, Ethereum remains robust following a surge between October 2023 and March 2024. It has seen a rise of over 35% this year and an impressive 69% increase over the past 12 months.

Also Check Out : $1.4B Bitcoin Whales Accumulation Fuels Bull Frenzy: $74K Breached Soon?

Do you agree with the analyst’s prediction for Bitcoin’s price? Why or why not?

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.