Market Watch: FxPro’s senior analyst, Alex Kuptsikevicha, has indicated a potential decline in Ethereum’s value amidst a week of subdued market activity, suggesting a possible fall to the $2,000 threshold.
Ethereum’s Downward Trend
With Ethereum’s price tumbling by over 8% this week, the second-largest cryptocurrency by market cap is facing a bearish outlook. Kuptsikevicha notes that the altcoin could be heading towards a further decline, eyeing the $2,000 mark as a potential bottom amid current market conditions.
Crypto Market’s Subdued Volatility
The crypto market has been experiencing a period of consolidation, with the total market capitalization remaining steady at around $1.6 trillion. This stagnation is mirrored by a similar trend in equity indices, which have also witnessed a notable downturn over the past day.
Stock Market’s Influence on Crypto
Despite the decline in stock values, Kuptsikevich perceives this as more reflective of individual corporate narratives rather than a broader market shift. Cryptocurrency investors seem to be less impacted by the current stock market volatility.
Bitcoin’s Consolidation Benefit
Bitcoin appears to be capitalizing on the consolidation phase, with its market dominance climbing above 50%. Conversely, Ethereum is not faring as well, lingering at the lower end of its consolidation range since December, and could be on the verge of dipping to the $2,100 mark, a significant level from its November consolidation phase.
Regulatory Delays and ETF Hopes
The Securities and Exchange Commission (SEC) has postponed its decision on a spot Ethereum ETF proposed by BlackRock to March 10. Opinions are divided among experts on the likelihood of its approval, with some maintaining a cautiously optimistic outlook, while others brace for regulatory hurdles.
Wider Cryptocurrency Adoption
The introduction of spot Bitcoin ETFs in the U.S. has contributed to a broader interest in cryptocurrencies, signaling a step toward more widespread adoption. Coinbase’s head of institutional suggests this could mark a shift in the mainstream investment landscape for digital currencies.
The Gradual Influx of New Capital
While the crypto market welcomes new investors, the inflow of fresh capital into the sector is anticipated to be a slow and steady progression, potentially unfolding over several months or years.
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